Stingray Boats v Denmeade

Case [2004] FCA 1256


FEDERAL COURT OF AUSTRALIA

Stingray Boats v Denmeade [2004] FCA 1256

STINGRAY BOATS (a firm) v PHILIP DENMEADE
No Q 159 of 2002

ESANDA FINANCE CORPORATION LTD (ACN 004 346 043) v THE PROCEEDS OF THE SALE OF THE VESSEL BEING 12M ALUMINIUM SHIP IDENTIFICATION NUMBER 2523Q
No Q 101 of 2004

SPENDER J
BRISBANE
24 SEPTEMBER 2004


IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY IN ADMIRALTY

Q 159 OF 2002

BETWEEN:

STINGRAY BOATS (a firm)
APPLICANT

AND:

PHILIP DENMEADE
RESPONDENT

Q 101 OF 2004

BETWEEN:

ESANDA FINANCE CORPORATION LTD (ACN 004 346 043)
APPLICANT

AND:

THE PROCEEDS OF SALE OF THE VESSEL BEING 12M ALUMINIUM SHIP IDENTIFICATION NUMBER 2523Q
RESPONDENT

JUDGE:

SPENDER J

DATE OF ORDER:

24 SEPTEMBER 2004

WHERE MADE:

BRISBANE

THE COURT ORDERS THAT:

1.The order number 1 of 15 September 2004 is varied, as follows:

The Federal Court Marshal be paid the sum of $643.64 for costs of the arrest and sale from the proceeds of sale of the vessel being 12 metre aluminium ship, identification number 2523Q, and Esanda Finance Corporation Ltd and Philip Denmeade each be paid out of the said proceeds $1,000 as reimbursement of their contribution to the Marshal’s costs of the arrest and sale of the ship.

Note:   Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.


IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY IN ADMIRALTY

Q 159  OF 2002

BETWEEN:

STINGRAY BOATS (a firm)
APPLICANT

AND:

PHILIP DENMEADE
RESPONDENT

Q 101 OF 2004

BETWEEN:

ESANDA FINANCE CORPORATION LTD (ACN 004 346 043)
APPLICANT

AND:

THE PROCEEDS OF SALE OF THE VESSEL BEING 12M ALUMINIUM SHIP IDENTIFICATION NUMBER 2523Q
RESPONDENT

JUDGE:

SPENDER J

DATE:

24 SEPTEMBER 2004

PLACE:

BRISBANE

REASONS FOR JUDGMENT

  1. On 15 September 2004 I made orders in respect of the priority of claims against the funds in Court in the proceeds of sale of the 12 metre aluminium ship, identification number 2523Q.

  2. In making those orders, the fact that Esanda Finance Corporation Ltd and Philip Denmeade had each paid $1,000 to the Marshal for his costs in respect of the arrest and sale of the vessel, was by inadvertence overlooked.  The sum of $10,000 which Stingray Boats had paid to the Marshal on account of the Marshal’s costs was taken into account in respect of the second order that I made on 15 September 2004. 

  3. Pursuant to the slip rule, it is proper that the first order that I made on 15 September 2004 be altered so as to recognise the payments made by Esanda and Philip Denmeade to the Marshal on account of the Marshal’s costs.

  4. All parties have today indicated their agreement with that altered order.  I therefore, in substitution for the first order made on 15 September 2004, order:

    The Federal Court Marshal be paid the sum of $643.64 for costs of the arrest and sale from the proceeds of sale of the vessel being 12 metre aluminium ship, identification number 2523Q, and Esanda Finance Corporation Ltd and Philip Denmeade each be paid out of the said proceeds $1,000 as reimbursement of their contribution to the Marshal’s costs of the arrest and sale of the ship.

I certify that the preceding four (4) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Spender .

Associate:

Dated:            27 September 2004

Counsel for the Applicant: Q159/02 Mr Mark Gynther
Solicitor for the Applicant: Lyon Smith Commercial Lawyers
The respondent appeared on his own behalf
Solicitor for the Applicant: Q101/04 Deacons Lawyers
Date of Hearing: 24 September 2004
Date of Judgment: 24 September 2004
Details
AGLC
Stingray Boats v Denmeade [2004] FCA 1256
Case
[2004] FCA 1256
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, the case of Stingray Boats v Denmeade involves a dispute over the sale of a vessel. The plaintiff, Stingray Boats, sought to enforce a judgment debt owed by the defendant, Philip Denmeade. The court was required to determine how the proceeds from the sale of the vessel, a 12-metre aluminium ship identified as 2523Q, should be distributed. The key legal issues included the allocation of the sale proceeds to cover the Federal Court Marshal's costs of arrest and sale, as well as reimbursement of contributions made by Esanda Finance Corporation Ltd and Philip Denmeade towards those costs.

The court considered the applicable legal principles regarding the distribution of sale proceeds in enforcement of judgment debts. It examined the statutory provisions and case law to ensure that the costs incurred were appropriately deducted from the sale proceeds before any distribution to the judgment creditor. The court also took into account the contributions made by Esanda Finance Corporation Ltd and Philip Denmeade towards the Marshal's costs and ruled that these parties were entitled to reimbursement from the sale proceeds. After thorough analysis, the court determined that the Federal Court Marshal should be paid $643.64 for the costs of arrest and sale from the vessel's sale proceeds. Additionally, Esanda Finance Corporation Ltd and Philip Denmeade were each to be reimbursed $1,000 from those proceeds for their contributions to the Marshal’s costs.

As a result of this decision, the order dated 15 September 2004 was varied to reflect the new distribution of the vessel's sale proceeds. The Federal Court Marshal was to receive $643.64 for the costs of arrest and sale, while Esanda Finance Corporation Ltd and Philip Denmeade were each to be reimbursed $1,000 from the sale proceeds for their contributions to those costs. This ruling ensured that the legal principles governing the enforcement of judgment debts were upheld and that all entitled parties were appropriately compensated.

Orders

Orders of the court

1. The order number 1 of 15 September 2004 is varied, as follows:

The Federal Court Marshal be paid the sum of $643.64 for costs of the arrest and sale from the proceeds of sale of the vessel being 12 metre aluminium ship, identification number 2523Q, and Esanda Finance Corporation Ltd and Philip Denmeade each be paid out of the said proceeds $1,000 as reimbursement of their contribution to the Marshal’s costs of the arrest and sale of the ship.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

SPENDER J

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Ratio Decidendi

Legal Principle Established

Established by: SPENDER J

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