FEDERAL CIRCUIT COURT OF AUSTRALIA
| WILKINSON & KEMP | [2015] FCCA 3308 |
| Catchwords: FAMILY LAW – Property – enforcement of property order – Application in a Case – Application incompetent. |
| Legislation: Bankruptcy Act 1966 (Cth), ss.58, 60 Family Law Act 1975 (Cth), s.79 |
| Cases cited: Kemp & Wilkinson [2015] FCCA 1621 Kemp & Wilkinson (No.2) [2015] FCCA 2268 Langer & Griffin [2013] FamCAFC 170 Melnik v Melnik [2005] FCAFC 160; (2005) 144 FCR 141 |
| Applicant: | MS WILKINSON |
| Respondent: | MS KEMP |
| File Number: | SYC 7637 of 2012 |
| Judgment of: | Judge Scarlett |
| Hearing date: | 7 December 2015 |
| Date of Last Submission: | 7 December 2015 |
| Delivered at: | Sydney |
| Delivered on: | 7 December 2015 |
REPRESENTATION
| Applicant: | In person |
| Respondent: | In person |
ORDERS
The Application in a Case filed on 2 October 2015 is dismissed as incompetent.
The subpoenas filed on 29 October 2015 addressed to:
(a)The proper officer, (omitted);
(b)The proper officer, (omitted);
(c)The proper officer, (omitted); and
(d)The proper officer, (omitted)
are set aside.
No order for costs.
IT IS NOTED that publication of this judgment under the pseudonym Wilkinson & Kemp is approved pursuant to s.121(9)(g) of the Family Law Act 1975 (Cth).
| FEDERAL CIRCUIT COURT OF AUSTRALIA AT SYDNEY |
SYC 7637 of 2012
| MS WILKINSON |
Applicant
And
| MS KEMP |
Respondent
REASONS FOR JUDGMENT
Application in a Case
This is an Application to enforce the payment of the amount of $45,352.42 which the Respondent was ordered to pay by way of settlement of property (Kemp & Wilkinson[1]). I note that there was also an order for costs made against the Respondent on 24th August 2015 in the sum of $2,560.00 (Kemp & Wilkinson (No.2)[2] but the Application does not seek to enforce that payment.
[1] [2015] FCCA 1621
[2] [2015] FCCA 2560
The Applicant has also issued four subpoenas against various financial institutions.
On 27th August 2015 the Respondent became bankrupt after having presented a Debtor’s Petition. He remains an undischarged bankrupt.
Background
The Applicant was aware of the Respondent’s bankruptcy, as she annexed to her affidavit a copy of a Notification of Bankruptcy – Debtor’s Petition advising of that fact. The notice says, relevantly:
The above named became bankrupt after presenting a Debtor’s Petition. If you are an unsecured creditor please stop all recovery action.
The Applicant did not stop her recovery action, rather, she filed her Application and an affidavit in support, in which she cast doubt on the validity of the Respondent’s bankruptcy, saying:
I believe that Mr Kemp has been abusing the bankruptcy system by using it as a means to avoid paying the sum of $45,352.42 as the Court ordered on 17 June 2015 that he has the capacity to pay over a reasonable period of time.[3]
[3] Affidavit of Ms Wilkinson 24 September 2015 at paragraph [7]
Consideration
The fact that the Respondent has become bankrupt changes the…
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- WILKINSON & KEMP [2015] FCCA 3308
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- [2015] FCCA 3308
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CaseChat Overview and Summary
The central legal issues before the court were the competency of the applicant's Application in a Case filed on 2 October 2015, and the validity of subpoenas issued on 29 October 2015 to various parties. The applicant's attempt to enforce a property order in the context of the respondent's bankruptcy raised questions about the appropriate procedural avenue for such enforcement.
Judge Scarlett determined that the Application in a Case was incompetent. This conclusion was based on the principle that once a party is made bankrupt, the enforcement of debts or property orders against them must generally proceed through the framework of the *Bankruptcy Act 1966* (Cth) and the rules governing bankruptcy proceedings, rather than through family law enforcement mechanisms. Consequently, the subpoenas issued in support of the incompetent application were also set aside.
The court ordered that the Application in a Case filed on 2 October 2015 be dismissed as incompetent, and the subpoenas filed on 29 October 2015 be set aside. No order was made for costs.
Orders
Orders of the court
1.
The Application in a Case filed on 2 October 2015 is dismissed as incompetent.
2.
The subpoenas filed on 29 October 2015 addressed to:
(a) The proper officer, (omitted);
(b) The proper officer, (omitted);
(c) The proper officer, (omitted); and
(d) The proper officer, (omitted)
are set aside.
3.
No order for costs.
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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