Re the Estate of Lawrence Robert Connell (Deceased) [2001] FCA 51

FEDERAL COURT OF AUSTRALIA

Re the Estate of Lawrence Robert Connell (Deceased)

[2001] FCA 51

BANKRUPTCY – distribution of assets – assets recovered through litigation and other legal steps initiated by the applicant – litigation and other action supported by indemnities from two contributing creditors – whether those two contributing creditors should be given priority, and if so, to what extent, in the distribution of the assets realised. Bankruptcy Act 1966 (Cth), s 109(10) Re Ken Godfrey Pty Ltd (1984) 12 ACLC 1071 followed Re Glenisia Investments Pty Ltd (In Liquidation) (1996) 14 ACLC 23 followed Re Steven Abrahams (Federal Court of Australia, unreported 4 September 1990, Judgment No 542/90) followed Serra-Sanfelin (Federal Court of Australia, unreported, 30 June 1988, Judgment No. 349/88) followed Power Demolitions Pty Ltd v Tosich Construction Pty Ltd (1998) 16 ACLC 410 followed Parkston Limited (In Liquidation) [2000] NSWSC 764 followed

RE THE ESTATE OF LAWRENCE ROBERT CONNELL (DECEASED); EX PARTE

ROSS STEWART NORGARD (TRUSTEE OF THE DECEASED ESTATE OF THE LATE LAWRENCE ROBERT CONNELL)

W 7098 of 2000 CARR J 8 FEBRUARY 2001 PERTH

IN THE FEDERAL COURT OF AUSTRALIA

WESTERN AUSTRALIA DISTRICT REGISTRY W 7098 OF 2000

Re the ESTATE OF LAWRENCE ROBERT CONNELL

(DECEASED) ROSS STEWART NORGARD (TRUSTEE OF THE DECEASED ESTATE OF THE LATE LAWRENCE ROBERT CONNELL)

Applicant JUDGE: CARR J

DATE OF ORDER: 8 FEBRUARY 2001

WHERE MADE: PERTH

THE COURT ORDERS THAT: 1. Pursuant to s 109(10) of the Bankruptcy Act 1966, the applicant distribute the net amount after costs, remuneration and other expenses recovered and identified by him in paragraphs 40(c), 66 and 70 and quantified in total in paragraph 71 of his affidavit sworn 23 November 2000 in the following manner: (a) first, in repayment to the Commonwealth of Australia and Rothwells Limited (In Liquidation) of the amounts advanced by them to the applicant under the terms of a deed of indemnity dated 23 December 1996; (b) secondly, in payment to the Commonwealth of Australia and Rothwells Limited (In Liquidation) of nine-tenths (9/10ths) of the balance after payment of the amounts referred to in sub-paragraph (a) above, to be shared between them rateably in the amounts advanced by each of them to the applicant under the above-mentioned deed; and (c) thirdly, in payment of the balance, after payment of the amounts referred to in sub-paragraphs (a) and (b) above, in the order provided by s 109(1) of the Bankruptcy Act 1966. 2. The costs of this application be costs in the administration of the estate and be paid out of the estate. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.