Talacko v Talacko (No 3)

Case [2011] FCA 1343


FEDERAL COURT OF AUSTRALIA

Talacko v Talacko (No 3) [2011] FCA 1343

Citation: Talacko v Talacko (No 3) [2011]  FCA 1343
Parties: HELENA MARIA TALACKO, ALEXANDRA ANN BENNETT, MARTIN THORBURN JAN TALACKO, ROWENA KIRSTEN EVE TALACKO AND MARGARET HELEN BEATRICE TALACKO v JAN EMIL TALACKO
File number: VID 201 of 2010
Judge: NORTH J
Date of judgment: 7 November 2011
Legislation: Bankruptcy Act 1966 (Cth)
Date of hearing: 7 November 2011
Place: Melbourne
Division: GENERAL DIVISION
Category: No Catchwords
Number of paragraphs: 7
Counsel for the Applicant: Mr P Fary
Solicitor for the Applicant: Holding Redlich
Solicitor for the Respondent: Mr M Witt of Findlay Arthur Phillips
Counsel for the Official Trustee in Bankruptcy: Ms C Gobbo
Solicitor for the Official Trustee in Bankruptcy: Australian Government Solicitor

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

GENERAL DIVISION

VID 201 of 2010

BETWEEN:

HELENA MARIA TALACKO, ALEXANDRA ANN BENNETT, MARTIN THORBURN JAN TALACKO, ROWENA KIRSTEN EVE TALACKO AND MARGARET HELEN BEATRICE TALACKO
Applicants

AND:

JAN EMIL TALACKO
Respondent

JUDGE:

NORTH J

DATE OF ORDER:

14 NOVEMBER 2011

WHERE MADE:

MELBOURNE

THE COURT ORDERS THAT:

1.The orders made on 7 November 2011 which do not reflect the intention of the Court be vacated and replaced with the following orders.

2.The control of the property of the respondent by the Official Trustee in Bankruptcy end forthwith.

3.Michael Witt deliver all passports of the respondent to the respondent’s trustee in bankruptcy, Brian Silvia, by forwarding them by pre-paid registered mail to the following address as soon as is reasonably practicable

Mr. Brian Silvia

BRI Ferrier

GPO Box 7079

Sydney NSW 2001

4.Upon the delivery up of all passports of the respondent in accordance with para 3, Michael Witt be released from his undertaking given to the Court on 28 March 2011.

5.Order 1 made on 30 August 2010, continue until 7 May 2012.

6.The applicants pay the reasonable costs and expenses of the Official Trustee in Bankruptcy of and incidental to its control of the property of the respondent (including the notice of motion filed by the Official Trustee on 27 June 2011).

7.The Official Trustee in Bankruptcy prepare a further bill of costs in taxable form in respect of the costs and expenses claimed under para 6.

8.Within 14 days after receipt of the further bill of costs in accordance with para 7, the applicants file and serve on the Official Trustee in Bankruptcy any objections to both the bill of costs dated 11 August 2011 and the further bill of costs.

9.The costs and expenses of the Official Trustee in Bankruptcy be taxed by a Registrar, if not agreed between the applicants and the Official Trustee in Bankruptcy.

10.Upon the completion of the taxation, the Official Trustee in Bankruptcy be permitted to pay itself from the moneys held in trust pursuant to the orders made on 15 July 2011 and 28 July 2011, but limited to the amount of costs and expenses as taxed.

Note:Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules.


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

GENERAL DIVISION

VID 201 of 2010

BETWEEN:

HELENA MARIA TALACKO, ALEXANDRA ANN BENNETT, MARTIN THORBURN JAN TALACKO, ROWENA KIRSTEN EVE TALACKO AND MARGARET HELEN BEATRICE TALACKO
Applicants

AND:

JAN EMIL TALACKO
Respondent

JUDGE:

NORTH J

DATE:

7 NOVEMBER 2011

PLACE:

MELBOURNE

REASONS FOR JUDGMENT

  1. On 30 August 2010, this Court ordered that:

    Until further order, the respondent, Jan Emil Talacko, be restrained from taking any further steps by himself or by his employees, agents or attorneys for the purpose of or in furtherance of selling, transferring, donating or otherwise dealing with any of the properties listed in Attachment “A”, save for the purpose of satisfying the orders made against him in Supreme Court of Victoria Proceeding No. 7393 of 1998.

  2. This order was part of a set of orders which vested the respondent’s property in the Official Trustee in Bankruptcy on an interim basis pending the hearing and determination of an appeal against the judgment upon which the applicants had issued a bankruptcy notice.  The estate of the respondent has now been vested in a registered trustee in bankruptcy (the trustee), as a result of a sequestration order made against his estate today.  The question arises whether the injunction should be continued. 

  3. Mr Fary, who appeared as counsel for the applicant, contended that the injunction should be continued. 

  4. The injunction was originally granted against a background of actions and conduct by the respondent which demonstrated the likelihood that he would seek to deal with the property to the detriment of the applicants.

  5. Mr Witt, who appeared on behalf of the respondent, contended that the injunction should no longer remain in place.  He contended that the provisions of the Bankruptcy Act 1966 (Cth) were now sufficient to ensure the safety of the property of the estate. 

  6. In my view, it is desirable that the entire control of the estate of the respondent be placed in the hands of the trustee.  The existence of the injunction outside the statutory scheme would be a complication for the trustee.  If he determines that a restraint in such terms is necessary, it is open for him to apply under the Act for the necessary orders. 

  7. However, the nature of the estate is complicated as it consists largely of properties in the Czech Republic which are subject to the complex laws of that country.  Consequently, the trustee should be given sufficient time to come to terms with the nature of the estate before determining whether to seek any particular orders against the respondent.  In those circumstances, the injunction will remain in place for six months.  Thereafter, the trustee will be able to make a new and separate application for orders in similar terms if he is so advised.

I certify that the preceding seven (7) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice North.

Associate:

Dated:        25 November 2011

Details
AGLC
Talacko v Talacko (No 3) [2011] FCA 1343
Case
[2011] FCA 1343
Decision Date

CaseChat Overview and Summary

Talacko v Talacko (No 3) involved the dispute over the control and administration of the bankrupt estate of the respondent, Talacko, and the delivery of his passports to his trustee in bankruptcy. The matter was heard in the Federal Court of Australia. The central legal issues centred on the correct interpretation and implementation of the orders made by the Court on 7 November 2011 concerning the respondent's property and the delivery of his passports. Specifically, the Court had to determine whether the orders made on that date accurately reflected the Court's intentions and whether they should be modified.

The Court examined the orders and the context in which they were made, finding that the original orders did not align with the Court's intentions. It was determined that the control of the respondent's property by the Official Trustee in Bankruptcy should cease immediately. Additionally, the Court instructed Michael Witt to deliver the respondent's passports to the trustee in bankruptcy, Brian Silvia, by pre-paid registered mail. Upon the delivery of the passports, Michael Witt was to be released from his undertaking given to the Court. The Court also extended Order 1 made on 30 August 2010 until 7 May 2012 and ordered the applicants to pay the Official Trustee in Bankruptcy's reasonable costs and expenses associated with the control of the respondent's property.

The Court vacated the previous orders and issued new ones to ensure that the respondent's property was correctly managed and that the passports were properly delivered. The applicants were required to pay the Official Trustee in Bankruptcy's costs and expenses, which were to be taxed by a Registrar if not agreed upon by the parties. The Official Trustee in Bankruptcy was permitted to pay itself from the moneys held in trust, limited to the amount of costs and expenses as taxed. This decision clarified the management of the bankrupt estate and ensured that the respondent's property was handled in accordance with the Court's intentions.

Orders

Orders of the court

1. The orders made on 7 November 2011 which do not reflect the intention of the Court be vacated and replaced with the following orders.

2. The control of the property of the respondent by the Official Trustee in Bankruptcy end forthwith.

3. Michael Witt deliver all passports of the respondent to the respondent’s trustee in bankruptcy, Brian Silvia, by forwarding them by pre-paid registered mail to the following address as soon as is reasonably practicable

Mr. Brian Silvia

BRI Ferrier

GPO Box 7079

Sydney NSW 2001

4. Upon the delivery up of all passports of the respondent in accordance with para 3, Michael Witt be released from his undertaking given to the Court on 28 March 2011.

5. Order 1 made on 30 August 2010, continue until 7 May 2012.

6. The applicants pay the reasonable costs and expenses of the Official Trustee in Bankruptcy of and incidental to its control of the property of the respondent (including the notice of motion filed by the Official Trustee on 27 June 2011).

7. The Official Trustee in Bankruptcy prepare a further bill of costs in taxable form in respect of the costs and expenses claimed under para 6.

8. Within 14 days after receipt of the further bill of costs in accordance with para 7, the applicants file and serve on the Official Trustee in Bankruptcy any objections to both the bill of costs dated 11 August 2011 and the further bill of costs.

9. The costs and expenses of the Official Trustee in Bankruptcy be taxed by a Registrar, if not agreed between the applicants and the Official Trustee in Bankruptcy.

10. Upon the completion of the taxation, the Official Trustee in Bankruptcy be permitted to pay itself from the moneys held in trust pursuant to the orders made on 15 July 2011 and 28 July 2011, but limited to the amount of costs and expenses as taxed.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules.

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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