Doolan v Dare [2004] FCA 682

FEDERAL COURT OF AUSTRALIA

Doolan v Dare [2004] FCA 682 BANKRUPTCY – TRUSTS – whether declaration of a first and final dividend was in accordance with Pt VI Div 5 of the Bankruptcy Act 1966 (Cth) – whether the declaration of dividend was made for an improper purpose by the trustee – if declaration of dividend made for improper purpose, whether it was, nonetheless, effective to pay out the creditors. Bankruptcy Act 1966 (Cth) ss 64, 73, 82, 134, 140-147, 156, 179, 181, Pt VI Div 5

Re Allen; Ex parte Official Receiver (1954) 16 ABC 154 considered Adsett v Berlouis (1992) 109 ALR 100 referred to The Attorney-General for the Commonwealth v Breckler (1999) 197 CLR 83 referred to Hughes Aircraft Systems International v Airservices Australia (1997) 146 ALR 1 referred to Hospital Products Limited v United States Surgical Corporation (1984) 156 CLR 41 referred to WILLIAM EDWARD DOOLAN v TRACEY JOY DARE No Q 78 of 2004 SPENDER J BRISBANE 27 MAY 2004

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY Q 78 OF 2004

BETWEEN: WILLIAM EDWARD DOOLAN

APPLICANT

AND: TRACEY JOY DARE

RESPONDENT

JUDGE: SPENDER J

DATE OF ORDER: 27 MAY 2004

WHERE MADE: BRISBANE

THE COURT DECLARES THAT:

The payments by the trustee to the creditors for the full extent of their proved claim discharges them from their rights in the bankrupt estate.

THE COURT ORDERS THAT: 1. Mr David Cranstoun be appointed Trustee in Bankruptcy of the estate of William Edward Doolan. 2. The respondent pay the applicant's costs of and incidental to the application, without recourse to the funds of the bankrupt estate of Mr Doolan, those costs to be taxed if not agreed. 3. The respondent pay the costs of the creditors (Warwick McDonald, Ramon Pollach, Dominic Guinea and Southbank Property Pty Ltd trading as Remax Southbank Property) of and incidental to the application, without recourse to the funds of the bankrupt estate of Mr Doolan, those costs to be taxed if not agreed.