Skase, C.C. v Pocock, N.J

Case [1991] FCA 882


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JUDGMENT NO ..,...,........ .. W 2 %..L
IN THE FEDERAL COURT OF AUSTRALIA ) I
GENE= DIVISION )
BANKRUPTCY DISTRICT OF THE 1 No. QB 1253 of 1991
STATE OF OUEENSLAND 1
RE :  CHRISTOPHER CHARLES SKASE
EX PARTE:  NEVILLE JOHN POCOCK

MINUTES OF ORDER

JUDGE MAKING ORDER:  PINCUS J.
DATE OF ORDER:  24 JULY 1991
WHERE MADE:  BRISBANE
THE COURT ORDERS TIIAT: 

1.   The court accepts the resignation of Neville John Pocock as trustee of the bankrupt estate of Christopher Charles Skase.

2.    The court so accepts the resignation subject to the condition that the applicant, Mr. Pocock, may have reasonable access to books, files and records which came into existence during his trusteeship in order to prepare his bill of costs.

NOTE:  Settlement and entry of orders is dealt with in Rule
124 of the Bankruptcy Rules. 
IN THE FED ER^ COURT OF AUSTRALIA ) :
GENERAL DIVISION 1
BANKRUPTCY DISTRICT OF THE 1 No. QB 1253 of 1991
STATE OF OUEENSLAND )
RE:  CHRISTOPHER CHARLES SKASE
EX PARTE:  NEVILLE JOHN POCOCK

W: PINCUS J.

PLACE: BRISBANE

W: 24 JULY 1991

EX TEMPORE REASONS FOR JUDGMENT

This is an application that the Court accept the resignation of Mr. Neville John Pocock as trustee of the estate of Christopher Charles Skase, a bankrupt. Mr. Skase became bankrupt on 13 June 1991, and the affidavit of Mr. Pocock says that there is not enough money in the estate to enable him to investigate Mr. Skase's affairs properly. The affidavit further says that a meeting of Mr. Skase's creditors was held on 3 July 1991, and that a motion was put that Mr. Pocock be removed as trustee forthwith and replaced by Mr. Max

Donnelly.

There was some support for the motion, but it was not carried. The view which Mr. Pocock has come to, according to his affidavit, is that the major creditors are not prepared to supply money for his administration but they might be prepared to fund another trustee. He takes the view - which seems, to me, correct - that, in the circumstances, it is best that he cease his trusteeship. Mr. Pocock seems to me to have

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acted, in making this application, in the best interests of the administration of the estate and I propose to accede to the application.

Two other questions arise. One which has been raised is the subject of including a condition which would prevent anyone suing Mr. Pocock in respect of things done during his trusteeship. Although mentioned during the course of the hearing, it does not seem to me that that condition should be imposed for two reasons: one is that it is not sought by Mr. Pocock, and the other is that, without a great deal more information, one could not properly impose such a condition. The second matter which has been raised by Mr. Stone of counsel for Mr. Pocock, is that the applicant wishes to have access to files, books and records used during his trusteeship in order to prepare his costs, and that will be imposed as a condition.

I should also mention that Mr. Hampson Q.C.,

what counsel for Mr. Pocock says, that the rules with respect helpfully, raised the question of service. It appears, from

to service have not been strictly complied with; however, I accept the submission that, in the circumstances, that can be overlooked under 9.306 of the Bankruutcv Act 1966, and I propose to do that.

The orders will therefore be:  1, the Court accepts

the resignation of Neville John Pocock as trustee of the

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bankrupt estate of Christopher Charles Skase; 2, the Court so accepts the resignation subject to the condition that the applicant Mr. Pocock may have reasonable access to the books, files and records which came into existence during his trusteeship in order to prepare his bill of costs.

I certify that this and the two preceding pages are a true copy of the reasons for judgment herein of his Ilonour Mr. Justice Pincus

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Associate

Date ZLf -July '99'

Details
AGLC
Skase, C.C. v Pocock, N.J [1991] FCA 882
Case
[1991] FCA 882
Decision Date

CaseChat Overview and Summary

The case of Skase v Pocock before Pincus J in the Federal Court of Australia dealt with the resignation of Neville John Pocock as trustee of the bankrupt estate of Christopher Charles Skase. Skase became bankrupt on 13 June 1991, and Pocock, acting as trustee, found that there were insufficient funds within the estate to allow for a proper investigation of Skase's affairs. A creditors' meeting was held on 3 July 1991, during which a motion to remove Pocock as trustee and replace him with Max Donnelly was proposed but not carried. Pocock concluded that it was in the best interests of the estate to resign, as major creditors were unwilling to fund his administration but might support another trustee.

The legal issues before the court were whether to accept Pocock's resignation and, if so, under what conditions. The court considered whether to impose a condition preventing Pocock from being sued for actions taken during his trusteeship, as well as whether to grant him access to estate records for the purpose of preparing his bill of costs. Pincus J determined that while Pocock's resignation was in the best interest of the estate's administration, a condition barring legal action against Pocock was inappropriate due to insufficient information and lack of request from Pocock himself. However, the court did agree to allow Pocock reasonable access to estate records for preparing his costs.

Pincus J's reasoning was based on the best interests of the estate, recognising that Pocock's resignation under the given circumstances was appropriate. The court also addressed procedural issues, such as non-compliance with service rules, which were overlooked due to the specific circumstances under section 9.306 of the Bankruptcy Act 1966. The final orders were that the court accepted Pocock's resignation as trustee, subject to the condition that he have reasonable access to estate records for preparing his bill of costs.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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