Scott (Trustee), in the matter of Stolyar (Bankrupt) v Stolyar (No 3)

In the case of Scott (Trustee), in the matter of Stolyar (Bankrupt) v Stolyar (No 3), the court addressed an application by the trustee of a bankrupt estate for a stay of execution of orders made in the Federal Circuit and Family Court. The central dispute revolves around the enforcement of orders issued in September 2022, which the trustee sought to execute against the bankrupt, Mrs Stolyar. Mrs Stolyar argued for a stay of execution on the grounds of hardship and that the judgment was obtained by fraud.

The court had to decide whether the hardship argument alone was sufficient to warrant a stay of execution, and whether the assertion that the judgment was obtained by fraud met the stringent legal standards required to set aside a judgment on such grounds. The court referenced established legal principles, including the requirement for clear and particularised proof of fraud, and the public interest in the finality of litigation. Given that Mrs Stolyar had not provided sufficient evidence to meet the high threshold for alleging fraud, the court found her application lacking in this regard.

The court dismissed both grounds of the application for a stay of execution. It reasoned that the hardship, while real and regrettable, was not sufficient to warrant a stay given the extensive period Mrs Stolyar had to vacate the property and her failure to do so. Additionally, the court found that Mrs Stolyar's allegations of fraud were not substantiated by clear and particularised evidence as required by law. Consequently, the court ordered that the application for a stay of execution be dismissed, and the first respondent was to pay the applicant's costs of the application. The court scheduled a case management hearing to address further procedural matters.