Halsted (Bankrupt) v The Official Trustee in Bankruptcy, in the matter of Halsted (Bankrupt) [2011] FCA 1242

FEDERAL COURT OF AUSTRALIA

Halsted (Bankrupt) v The Official Trustee in Bankruptcy, in the matter of Halsted (Bankrupt) [2011] FCA 1242 Citation: Halsted (Bankrupt) v The Official Trustee in Bankruptcy, in the matter of Halsted (Bankrupt) [2011] FCA 1242

Parties: WILLIAM ANTHONY HALSTED (A BANKRUPT) v THE OFFICIAL TRUSTEE IN BANKRUPTCY, SLATER & GORDON LAWYERS (A FIRM) and ASK FUNDING LIMITED (ACN 094 503 385)

File number: QUD 221 of 2011

Judge: LOGAN J

Date of judgment: 17 October 2011

Catchwords: BANKRUPTCY AND INSOLVENCY – settlement proceeds – whether settlement proceeds from personal injury claim are property of the bankrupt – proceeds are not property of bankrupt EQUITY – equitable charges – whether intention to create equitable charge over settlement proceeds in favour of the third respondent – where third respondent had entered into two loans with bankrupt – where loans included inevocable instruction not to pay money to bankrupt until loan debt had been paid out of settlement proceeds – whether there was intention to keep settlement proceeds separate and loan would be paid out of those separate funds – equitable charge created over settlement proceeds in favour of third respondent

Legislation: Bankruptcy Act 1966 (Cth) s 116 Companies Act 1961 (NSW) s 27

Cases cited: Comptroller of Stamps (Victoria) v Howard-Smith (1936) 54 CLR 614 referred to Jackson v Richards [2005] NSWSC 630 applied Palmer v Carey [1926] AC 703; 37 CLR 545 referred to Re Toocooya Investments Pty Ltd (1978) 3 ACLR 252 considered Swiss Bank Corp v Lloyds Bank Ltd [1982] AC 584 applied