Conlan v Stone [2012] FCA 1359

FEDERAL COURT OF AUSTRALIA

Conlan v Stone [2012] FCA 1359 Citation: Conlan v Stone [2012] FCA 1359

Parties: MARK ANTHONY CONLAN IN HIS CAPACITY AS TRUSTEE OF THE BANKRUPT ESTATES OF PETAH JOHN STONE AND VALERIE KAYE STONE v PETAH JOHN STONE AND VALERIE KAYE STONE and CARL DESMOND STONE, KIM NOEL STONE, CRAIG VERNON STONE AND STRATHMORE FARMS PTY LTD (ACN 146 817 192)

File number: WAD 98 of 2012

Judge: MCKERRACHER J

Date of judgment: 30 November 2012

Catchwords: BANKRUPTCY – application by trustee in bankruptcy for delivery up of farming plant, machinery and equipment and declarations that transfers of plant, machinery and equipment between family members were void – consideration of nature and effect of Deed executed in 1992 between the bankrupt parents and their sons in relation to a schedule of plant and machinery – whether Deed was void under the Bankruptcy Act 1966 (Cth) for its intention to defeat third party creditors – whether Deed created a security interest in favour of the sons over subsequent replacement items of plant and machinery acquired by the farming partnership – identity of ownership of the claimed equipment – transfer of certain of the equipment – whether transfers void EQUITY – consideration of whether the sons had any equitable claim to the property – whether the sons had foregone their entitlement to proper wages for farm work in reliance on assurances given by the parents and the Deed – whether the sons had knowledge of the debts owed by their parents' farming partnership – whether granting equitable relief to the sons would give them unfair priority over third party creditors – no evidence of notice given to third party creditors of the sons' claimed interest in the plant and equipment – whether trustee entitled to an account of profits