Jones (as Trustee of the property of Heather MacNeil-Brown, A Bankrupt) v Southall & Bourke Pty Ltd [2004] FCA 539

FEDERAL COURT OF AUSTRALIA

Jones (as Trustee of the property of Heather MacNeil-Brown, A Bankrupt) v Southall & Bourke Pty Ltd [2004] FCA 539 Bankruptcy – Restitution of stolen moneys in 'relation back' period – 'Ordinary course of business' – 'Good faith' – Knowledge or suspicion of debtor's insolvency – Constructive trust – Restitution of stolen moneys – Tracing – Proprietary claim – Equitable charge. Federal Court of Australia Act 1976 (Cth) ss 24(1)(d), 25(1A) Sentencing Act 1991 (Vic) s 86 Crimes Act 1958 (Vic) Bankruptcy Act 1966 (Cth) ss 121(1), 122(2), 122(2)(a), 122(4)(c)

Attorney‑General (Hong Kong) v Reid [1994] 1 AC 324 considered Australian Postal Corporation v Lutak (1991) 12 NSWLR 584 considered Black v S Freedman & Co (1910) 12 CLR 105 referred to Boscawen v Bajwa; Abbey National plc v Boscawen [1995] 4 All ER 769; [1996] 1 WLR 328 referred to Burns v Leda Holdings Pty Ltd (1987) 89 FLR 365noted Cashflow Finance Pty Ltd (in liq) v Westpac Banking Corp [1999] NSWSC 671 referred to Chase Manhattan Bank NA v Israel-British Bank (London) Ltd [1981] CH 105 noted Concut Pty Ltd v Worrell (2000) 176 ALR 693 followed Daly v Sydney Stock Exchange Ltd (1986) 160 CLR 371 referred to Downes Distributing Co Pty Ltd v Associated Blue Star Stores Pty Ltd (in liq) (1948) 76 CLR 463 referred to Farrington v Deputy Commissioner of Taxation (2002) 50 ATR 429 followed Foskett v McKeown [2000] 3 All ER 97 referred to Fowkes v Deputy Director of Prosecutions (1997) 2 VR 506 considered Giumelli v Giumelli (1999) 196 CLR 101referred to Harkness v Partnership Pacific Ltd (1997) 41 NSWLR 204 considered Holmes v Wennington (1790) 2 Bos & Pul 401; 126 ER 1350n referred to Hospital Products Ltd v United States Surgical Corporation (Hospital Products/Surgical Staples case) (1984) 156 CLR 41 referred to Johnson v Miller (1937) 59 CLR 467 referred to Menzies v Perkins [2000] NSWSC 40 referred to Muschinski v Dodds (1985) 160 CLR 583 referred to National Australia Band Ltd v Rusu [2001] NSWSC 32 referred to Queensland Bacon Pty Ltd v Rees (1966) 115 CLR 266 referred to Re Goode; Ex parte Mount (1974) 4 ALR 579 referred to Re Hallett's Estate; Knatchbull v Hallett (1880) 13 Ch D 696 referred to Re Stephenson Nominees Pty Ltd v Official Receiver on Behalf of Official Trustee in Bankruptcy; Ex parte Roberts & Another (1987) 76 ALR 485 noted Robertson v Grigg (1932) 47 CLR 257followed Rust v Cooper (1777) 2 COWP 629; 98 ER 1277 noted Scott v Scott (1963) 109 CLR 649 referred to Space Investments Ltd v Canadian Imperial Bank of Commerce Trust Co (Bahamas) Ltd [1986] 3 ALL ER 75 considered Spedding v Spedding (1913) 30 WN (NSW) 81 referred to Taylor v White (1964) 110 CLR 129 followed Warman International Ltd v Dwyer (1995) 182 CLR 544 referred to Westdeutsche Landesbank Girozentrale v Islington London Borough Council [1996] AC 669 considered Zobory v Federal Commissioner of Taxation (1995) 64 FCR 86 referred to