Federal Court of Australia
FEDERAL COURT OF AUSTRALIA
Maxwell-Smith v Donnelly [2010] FCA 474 Citation: Maxwell-Smith v Donnelly [2010] FCA 474
Parties: EUGENE MAXWELL-SMITH and INGE MAXWELL-SMITH v MAX CHRISTOPHER DONNELLY and S & E HALL PTY LTD
File number: NSD 198 of 2004
Judge: NICHOLAS J
Date of judgment: 14 May 2010
Catchwords: BANKRUPTCY – After sequestration orders were annulled, a consent was order made that the costs, charges and expenses of the administration of the former bankrupts' estates, including the trustee's remuneration and expenses, be taxed by a Registrar – Registrar conducted taxation and issued Certificates of Taxation – application by former bankrupts to set aside the Registrar's decision – application by former trustee for orders giving effect to the Registrar's decision – jurisdiction of the Court to review Registrar's decision – effect of order by Full Court in previous proceeding between former bankrupts and former trustee that there be "no order as to costs" – whether costs agreements between former trustee and solicitors entitled solicitors to charge a 25% premium or uplift fee – whether trustee entitled to remuneration and expenses in relation to proposed public examinations of former bankrupts after lodgement of statement of affairs and filing of annulment application – whether relevant work unnecessary
Held: Review limited to whether the Registrar's decision was affected by error of principle – in the circumstances, Full Court order that there be "no order as to costs" prevented the former trustee from recovering costs from the former bankrupts' estates – solicitors not entitled to charge a premium or uplift fee under the first and third costs agreements as these did not by their terms confer any right to do so – remuneration, costs and expenses of trustee relating to public examinations incurred after 1 March 2004 should be disallowed – proceeding remitted to Registrar to prepare report on what further amounts should be disallowed in accordance with these reasons
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