Michell (Trustee), in the matter of Lee (deceased) [2012] FCA 1046

FEDERAL COURT OF AUSTRALIA

Michell (Trustee), in the matter of Lee (deceased) [2012] FCA 1046 Citation: Michell (Trustee), in the matter of Lee (deceased) [2012] FCA 1046

Parties: STEPHEN JOHN MICHELL AND CLYDE PETER WHITE (AS TRUSTEES OF THE PROPERTY OF JOHN WILLIAM LEE (DECEASED), A BANKRUPT) v MAUREEN MONICA LEE (AS ADMINISTRATOR OF THE DECEASED ESTATE OF JOHN WILLIAM LEE)

File number: VID 879 of 2011

Judge: GRAY J

Date of judgment: 24 September 2012

Catchwords: BANKRUPTCY AND INSOLVENCY – property of bankrupt – bankrupt practised as a barrister – operated on a cash receipts basis – fees outstanding at date of bankruptcy – fees paid subsequently – whether fees to be treated as property of the bankrupt, vesting in trustees in bankruptcy and divisible amongst creditors, or as income of bankrupt – whether death of bankrupt during bankruptcy caused fees to vest in trustees in bankruptcy BANKRUPTCY AND INSOLVENCY – trustees in bankruptcy – seeking directions of Court – authority in point – whether trustees in bankruptcy should have sought directions – whether should have acted in accordance with authority PRACTICE AND PROCEDURE – costs – trustees in bankruptcy seeking directions of Court – authority in point – whether trustees in bankruptcy should have sought directions – whether should have acted in accordance with authority – whether costs of trustees in bankruptcy and costs paid to successful respondent should be treated as costs of the trustees in bankruptcy of the administration of the bankrupt estate

Legislation: Bankruptcy Act 1924 (Cth) s 101 Bankruptcy Act 1966 (Cth) ss 5(1), 27, 30, 30(1), 58, 58(1), 60(2), Div 3 Pt VI, 116, 116(1), Div 4 Pt VI, 131, 134(4), Div 4B Pt VI, 139J, 139K, 139L, 139M(3), 139W Federal Court of Australia Act 1976 (Cth) s 43(2) Legal Profession Act 1987 (NSW)