Re Cornwall, A.T. v. Ex parte Whalan, K.H [1988] FCA 46

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+ 66 SIDGMENT No. Aloy SS

CATCHWORDS

Bankruptcy - creditor's petition - subrogation of the rights and

remedies of the judgment creditor - indebtedness.

Bankruptcy Act 1966 Legal Practitioners' Act 1898-1987 (N.S.wW.)

No. 971 of 1987

Re: ALLAN TERRY CORNWALL Ex Parte: KENNETH HENRY WHALAN

FORSTER, J. ADELAIDE

26 FEBRUARY, 1988

IN THE FEDERAL COURT OF AUSTRALIA

SOUTH AUSTRALIA DISTRICT REGISTRY

GENERAL DIVISION No. 971 of 1987

BANKRUPTCY DISTRICT OF THE STATE

ee ee

OF SOUTH AUSTRALIA

Re: ALLAN TERRY CORNWALL Ex Parte:

KENNETH HENRY WHALAN

JUDGE MAKING ORDER H FORSTER J. WHERE MADE 3 ADELAIDE

DATE OF ORDER 26 FEBRUARY, 1988

THE COURT ORDERS THAT:

1. A sequestration order be made against the estate of the debtor Allan Terry Cornwall. 2. The petitioning creditor's costs, including reserved costs,

be taxed and paid in accordance with the Bankruptcy Act 1966.

Note: Settlement and entry of order is dealt with in Bankruptcy Rule 124.

IN THE FEDERAL COURT OF AUSTRALIA

SOUTH AUSTRALIA DISTRICT REGISTRY

GENERAL DIVISION

No. 971 of 1987

BANKRUPTCY DISTRICT OF THE STATE

OF SOUTH AUSTRALIA

Re: ALLAN TERRY CORNWALL

Ex Parte:

KENNETH HENRY WHALAN

REASONS FOR JUDGMENT

FORSTER J. :

Allan Terry Cornwall ("Cornwall") is a former solicitor of the Supreme Court of New South Wales. Kenneth Henry Whalan ("Whalan") was a client of his. Over a period prior to 1980 Whalan gave to Cornwall sums of money totalling $39,959 upon the clear understanding that Cornwall would invest the money on first Mortgages. With the exception of $3,500 none of these principal moneys was ever recovered by Whalan who thus suffered a loss of

$36,459.

A fund called the "Solicitors' Fidelity Fund" ("the Fund") is established by s.46 of the Legal Practitioners' Act 1898-1987 (N.S.W.) ("the Act"). The Council of the Law Society had at relevant times delegated its power in relation to the Fund