Webster & Glover (No. 2)

Case [2021] FamCA 127


FAMILY COURT OF AUSTRALIA

Webster & Glover (No. 2) [2021] FamCA 127

File number(s): BRC 11228 of 2016
Judgment of: BAUMANN J
Date of judgment: 16 March 2021
Catchwords: FAMILY LAW – Where there is a preliminary question as to whether there is property not covered by the terms of the binding financial agreement – Where the Court finds that the binding financial agreement covers all interests
Legislation: Family Law Act 1975 (Cth) ss 90KA, 90SA
Cases cited:

Frederick & Frederick (2019) FLC 93-900

Jones & Dunkel (1959) 101 CLR 298

Number of paragraphs: 36
Date of hearing: 22 September 2020
Place: Brisbane
Counsel for the Applicants: Mr J Bunning
Solicitor for the Applicants: Damien Greer Lawyers
Counsel for the Respondents: Mr J Cahill
Solicitor for the Respondents: Saunders & Co Solicitors

ORDERS

BRC 11228 of 2016
BETWEEN:

MR WEBSTER

First Applicant

S PTY LTD

Second Applicant

AND:

MS GLOVER

First Respondent

R PTY LTD

Second Respondent

ORDER MADE BY:

BAUMANN J

DATE OF ORDER:

16 MARCH 2021

THE COURT ORDERS:

1.That these proceedings be adjourned for Case Management Hearing for pronouncement of orders at 9.30am on 8 April 2021 in the Family Court of Australia at Brisbane.

Note:   The form of the order is subject to the entry in the Court’s records.

Note: This copy of the Court’s Reasons for judgment may be subject to review to remedy minor typographical or grammatical errors (r 17.02A(b) of the Family Law Rules 2004 (Cth)), or to record a variation to the order pursuant to 17.02 Family Law Rules 2004 (Cth).

IT IS NOTED that publication of this judgment by this Court under the pseudonym Webster & Glover has been approved by the Chief Justice pursuant to s 121(9)(g) of the Family Law Act 1975 (Cth).

REASONS FOR JUDGMENT

BAUMANN J:

INTRODUCTION

  1. By Orders made 17 December 2018, for Reasons published on 16 November 2018 by Judge Jarrett, a de facto financial agreement dated by the parties on 1 July 2010 (hereafter called the “BFA”) was found to be binding upon the parties and the Application by Ms Glover  to set aside the agreement on a number of grounds, was dismissed.  Subsequently the proceedings were transferred to the Family Court of Australia.

  2. However, that determination did not bring these proceedings in this Court to an end.

  3. The Applicant Mr Webster had initially commenced proceedings in the Federal Circuit Court of Australia in November 2016 seeking inter alia, that the financial agreement was binding, however since that date numerous applications have been filed and determined both in the Federal Circuit Court of Australia and now the Family Court of Australia.

  4. Simply expressed, the hearing before me on 22 September 2020, when Mr Bunning of Counsel appeared for Mr Webster and Mr Cahill of Counsel appeared for Ms Glover was a discrete hearing listed by Order made 9 July 2020, identified by the Order made on that day in these terms: “That the preliminary question as to whether there is property not covered…

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AGLC
Webster & Glover (No. 2) [2021] FamCA 127
Case
[2021] FamCA 127
Decision Date

CaseChat Overview and Summary

In *Webster & Glover (No. 2)*, Baumann J of the Family Court of Australia considered an application by Ms Glover concerning property not covered by a binding financial agreement (BFA). Mr Webster, as first applicant, sought declarations regarding the validity and enforcement of the BFA, including orders related to the "Q Management business" and general enforcement as if it were a court order. Ms Glover asserted an interest in Q Pty Ltd that she contended was not covered by the BFA.

The central legal issue before the Court was whether there existed any property or interests not encompassed by the terms of the BFA, which would then allow for further proceedings under s 90SM of the *Family Law Act 1975* (Cth). This involved interpreting the scope and effect of the BFA, particularly clause 17, described as a "catch-all" provision, and determining if it could operate to remove rights to pursue actions in respect of any unaddressed interests.

Baumann J found that the BFA covered all relevant interests. The Court accepted submissions that clause 8 of the BFA related to enforcement rather than enlivening powers under s 90SM. Regarding Ms Glover's asserted interest in Q Pty Ltd, the Court noted the company was in liquidation, with no assets available for distribution to shareholders. Consequently, both Mr Webster (through S Pty Ltd) and Ms Glover (through R Pty Ltd) had suffered losses, rendering further discussion of that entity unproductive. The Court also determined that clause 17, the "catch-all" clause, was not relevant as it could not operate to remove rights to pursue actions under s 90SM if property not covered by the BFA were found to exist, which it was not.

The application by Ms Glover was dismissed. The Court adjourned the proceedings for a case management hearing to pronounce final orders, acknowledging the matter had been on foot for over four years. The parties were invited to agree on the form of final orders consistent with the Court's reasons, and any outstanding applications for costs were to be addressed on the scheduled date.

Orders

Orders of the court

BRC 11228 of 2016

BETWEEN:

MR WEBSTER

First Applicant

S PTY LTD

Second Applicant

AND:

MS GLOVER

First Respondent

R PTY LTD

Second Respondent

ORDER MADE BY:

BAUMANN J

DATE OF ORDER:

16 MARCH 2021

THE COURT ORDERS:

1. That these proceedings be adjourned for Case Management Hearing for pronouncement of orders at 9.30am on 8 April 2021 in the Family Court of Australia at Brisbane.

Note: The form of the order is subject to the entry in the Court’s records.

Note: This copy of the Court’s Reasons for judgment may be subject to review to remedy minor typographical or grammatical errors (r 17.02A(b) of the Family Law Rules 2004 (Cth)), or to record a variation to the order pursuant to 17.02 Family Law Rules 2004 (Cth).

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

Mr Bunning made a final oral submission that:(a)clause 8 does not enliven the powers under s 90SM but only goes to enforcement of the BFA. I agree with this submission; and(b)even though Ms Glover asserts her interest in Q Pty Ltd is not covered by the BFA, that entity is in liquidation. Mr Webster concedes Ms Glover was the sole Director of that company since formation. The shareholding was as set out at paragraphs 16 and 17 of Mr Webster’s affidavit filed 18 February 2020. There are no assets available to the shareholders to distribute by way of dividend and I accept, regrettably, that both Mr Webster (through his entity S Pty Ltd) and Ms Glover (through her entity R Pty Ltd) have suffered loss through their investment in this venture. No utility arises from any further discussion of that entity. I agree; and(c)I do not regard the “catch all” clause in the BFA at clause 17 to be particularly relevant. For example, if, contrary to my finding, there were property, financial resources or other interests not covered by the BFA, then clause 17 could not operate to remove any rights to pursue actions under s 90SM in respect of those interests.CONCLUSION For the reasons set out, the Application by Ms Glover must be dismissed. In considering the terms of any final order, I am conscious of the fact that these proceedings were commenced by Mr Webster by Application filed 10 November 2016 and have therefore been on foot for over four years. Apart from seeking a declaration that the financial agreement is valid and binding, he also sought orders by way of enforcement directed to the “Q Management business” including Lot …, and a general application that “the agreement otherwise be enforced as if it was an Order of the Court”. I did not hear any submissions as to the form of the order that effectively brings these proceedings, at least at the trial level, to an end. I have not “trawled” through the over four years of Applications in a Case and Responses to be confident that there are no further pending or unresolved applications. Accordingly, this matter will be listed before me at 9.30am on Thursday, 8 April 2021 for pronouncement of final orders. If the parties are able to agree on the form of order consistent with these Reasons and the intent of the Court to finalise proceedings, then it can be submitted to chambers before 8 April 2021. If a party wishes to pursue any application for costs still pending before the Court, they can inform the Court on 8 April 2021 and a timetable for any such application to be considered on written submissions will be set.

Ratio Decidendi

Legal Principle Established

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