Turco v Mortgage Ezy Australia Pty Ltd

In the matter of Turco v Mortgage Ezy Australia Pty Ltd, the appeal was brought against a decision of the Federal Circuit Court of Australia, which had granted a sequestration order against Mr Turco at the petition of Mortgage Ezy. The primary dispute centred on whether the debt claimed by Mortgage Ezy was valid and enforceable, particularly in light of a previous bankruptcy of Mr Turco that had been annulled by a creditors' composition. Mr Turco argued that the debt was not disclosed to the trustee in the first bankruptcy and that Mortgage Ezy was unaware of the first bankruptcy until after its annulment. The court had to determine whether the primary judge erred in various respects, including in failing to consider the effect of the previous bankruptcy and composition, in holding Mr Turco bound by his conduct in separate Family Court proceedings, and in finding that Mr Turco had obtained forbearance by fraud.

The court found that no operative error was established in the primary judge's decision. The primary judge had considered the submissions made on behalf of Mr Turco regarding the previous bankruptcy and composition and had found that they did not justify going behind the judgment debt or warrant an adjournment of the proceedings. The court held that the proposed grounds for appeal lacked merit due to the significant delay in challenging the judgment debt and the absence of any special circumstances. The court further found that the primary judge did not err in holding Mr Turco bound by his conduct in the Family Court proceedings, as there was no procedural unfairness and the findings were supported by the evidence.

The appeal was dismissed, and the time for commencing the appeal was extended to 11 July 2019. Additionally, Mr Turco was ordered to pay Mortgage Ezy's costs of the appeal, to be assessed if not agreed.