Thompson v Lane

In the matter of Thompson v Lane, the plaintiff, Emma Thompson, sought final relief from the Supreme Court of Queensland to compel her former trustee in bankruptcy, Mr. Lane, to transfer the title of a real property to her. The defendant, Mr. Lane, had brought a summary judgment application against the plaintiff seeking dismissal of the proceeding, while the plaintiff had also brought a summary judgment application seeking the final relief. The central legal issues were whether the designated Federal Courts had exclusive jurisdiction over bankruptcy proceedings and if bankruptcy jurisdiction was revested in the Supreme Court of Queensland by section 4 of the Jurisdiction of Courts (Cross-vesting) Act 1987 (Cth). Additionally, the court had to determine whether there were 'special reasons' justifying an order pursuant to section 6(3) of the Jurisdiction of Courts (Cross-vesting) Act 1987 (Cth) and whether the proceeding should be transferred to the Federal Court of Australia.

The court examined the jurisdictional framework and concluded that the designated Federal Courts have exclusive jurisdiction over bankruptcy proceedings, and that bankruptcy jurisdiction is not revested in the Supreme Court of Queensland. The court also found that there were special reasons justifying the transfer of the proceeding to the Federal Court of Australia, primarily due to the complexity of the issues involved and the need for consistency in the interpretation and application of bankruptcy laws across jurisdictions. The court ruled that the proceeding should be transferred to the Federal Court of Australia to ensure proper jurisdiction and to maintain the integrity of bankruptcy law.

The court ordered that the proceeding commenced by the plaintiff’s claim filed on 31 March 2025 be transferred to the Federal Court of Australia pursuant to section 6(1) of the Jurisdiction of Courts (Cross-vesting) Act 1987 (Cth). This order includes the transfer of the unresolved interlocutory applications. The parties will be heard on costs in accordance with prior directions for the receipt of written submissions on the issue.