Willoughby v Official Trustee in Bankruptcy [2001] FCA 1345

FEDERAL COURT OF AUSTRALIA

Willoughby v Official Trustee in Bankruptcy [2001] FCA 1345 BANKRUPTCY – directions – whether trustee should be directed to assign causes of action to a particular party – whether direction appropriate – whether it would involve Court in advocacy opinion – whether direction precluded by protective effect on Trustee's liability Bankruptcy Act 1966 (Cth) s 134(4) Citicorp Australia Ltd v Official Trustee in Bankruptcy (1996) 141 ALR 667 cited Sutherland (in the matter of Scutts) [1999] FCA 147, (Sackville J, 25 February 1999, unreported) referred to Re Driller (1972) 21 FLR 159 cited Willoughby v Official Trustee in Bankruptcy (2000) 102 FCR 261 cited BERYL FRANCES WILLOUGHBY, JOHN FRANCIS WILLOUGHBY and MICHAEL STEPHEN WILLOUGHBY v THE OFFICIAL TRUSTEE IN BANKRUPTCY and LAWCOVER PTY LTD RD NICHOLSON J 20 SEPTEMBER 2001 PERTH

IN THE FEDERAL COURT OF AUSTRALIA

WESTERN AUSTRALIA DISTRICT REGISTRY W 7078 of 1999

BETWEEN: BERYL FRANCES WILLOUGHBY

JOHN FRANCIS WILLOUGHBY

MICHAEL STEPHEN WILLOUGHBY

APPLICANTS

AND: THE OFFICIAL TRUSTEE IN BANKRUPTCY

FIRST RESPONDENT

LAWCOVER PTY LTD (ACN 003 326 618)

SECOND RESPONDENT

JUDGE: RD NICHOLSON J

DATE OF ORDER: 20 SEPTEMBER 2001

WHERE MADE: PERTH

THE COURT ORDERS THAT: 1. The first respondent transfer and vest the claims and causes of action which are the subject matter of Action no WAG 183 of 1998 (excluding any causes of action under the Trade Practices Act 1974 (Cth)) in the applicants for the consideration offered by the applicants on 19 March 1999, viz the sum of $100 each plus payment of all creditors in the Estate of the bankrupts created on 10 December 1990 to a maximum amount of 50 per cent of all funds received by the applicants as a result of the prosecution of the said claims and causes of action. 2. The costs of the parties be paid out of the Estate of the bankrupts created on 10 December 1990. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.