Jefferson & Stevenson v Official Trustee in Bankruptcy, in the matter of Dunwoody [2000] FCA 990

FEDERAL COURT OF AUSTRALIA

Jefferson & Stevenson v Official Trustee in Bankruptcy, in the matter of Dunwoody (Bankrupt) [2000] FCA 990

BANKRUPTCY – remuneration of trustee - application by former trustee – declaration sought that former trustees entitled to be remunerated in accordance with section 162(4) of the Bankruptcy Act 1966 (Cth) – resolutions for remuneration proposed by trustee rejected by creditors – resolution by creditors to fix remuneration on a commission basis – work already performed by trustees – held not open to creditors to arbitrarily compel former trustees to accept remuneration on a commission basis for work already performed – operation of section 162(4) enlivened. Bankruptcy Act 1966 (Cth), par 134(1)(g); subs 30(1), 30(2), 101(1), 161B(1), 162(1), 162(2), 162(4) Judiciary Act 1903 (Cth), s 39B Mayne v Jacques (1959-1960) 101 CLR 69 Adsett v Berlouis (1992) 37 FCR 201 In Re Colgate (A Bankrupt), Ex parte Trustee of the Property of the Bankrupt [1986] 1 Ch 439 Re Smith, Ex parte Hamilton v Muir (1986) 66 ALR 175 philIP gregory jefferson & jay arscott stevenson v The Official trustee in bankruptcy as trustee of the estate of john ernest dunwoody (a bankrupt) Q 7407 OF 1999 DOWSETT J 26 JULY 2000 BRISBANE

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY Q 7407 OF 1999

BETWEEN: PHILIP GREGORY JEFFERSON & JAY ARSCOTT STEVENSON

APPLICANTS

AND: THE OFFICIAL TRUSTEE IN BANKRUPTCY AS TRUSTEE OF THE ESTATE OF JOHN ERNEST DUNWOODY (A BANKRUPT)

RESPONDENT

JUDGE: DOWSETT J

DATE OF ORDER: 26 JULY 2000

WHERE MADE: BRISBANE

THE COURT DECLARES THAT: 1. The applicants as former trustees of the bankrupt estate of John Ernest Dunwoody ("the estate") are entitled to be remunerated out of the estate in accordance with section 162(4) of the Bankruptcy Act 1966. THE COURT ORDERS THAT: 2. The parties have liberty to apply. 3. (a) The parties, including Peter Dunwoody, have liberty to make further submissions as to the proposed orders as to costs; (b) Relevant submissions should be reduced to writing and communicated to the other parties; and (c) Such submissions, together with any responses thereto, are to be forwarded to the Court within fourteen days of publication of these reasons for judgment. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.