Psevdos v Commonwealth Bank of Australia (No 2) [2017] FCA 19

FEDERAL COURT OF AUSTRALIA

Psevdos v Commonwealth Bank of Australia (No 2) [2017] FCA 19 Appeal from: Commonwealth Bank of Australia v Psevdos [2016] FCCA 1480

File number: SAD 193 of 2016

Judge: CHARLESWORTH J

Date of judgment: 25 January 2017

Catchwords: BANKRUPTCY AND INSOLVENCY – judgment debt consequent upon an adverse costs order – where judgment debt said to be affected by fraud – circumstances in which bankruptcy court may go behind judgment – application of House v The King (1936) 55 CLR 499 on an appeal from a finding that there was no "sufficient cause" not to make sequestration order – Bankruptcy Act 1966 (Cth), s 52(2)(b) TRUSTS AND TRUSTEES – personal liability of trustees for debts incurred in the performance of a trust – action commenced against appellant in relation to a transaction entered into in his capacity as trustee – trustee personally liable for costs in the action

Legislation: Bankruptcy Act 1924 (Cth), s 56 Bankruptcy Act 1966 (Cth), ss 41, 43, 52, 60 Federal Circuit Court of Australia Act 1999 (Cth), s 104 Supreme Court Civil Rules 2006 (SA), r 296 Trustee Act 1936 (SA), s 35

Cases cited: Astram Financial Services Pty Ltd v Bank of Queensland Ltd [2010] FCA 1010 Balkin v Peck (1998) 43 NSWLR 706 Bhagat v Global Custodians Ltd [2002] FCAFC 331 Commonwealth Bank of Australia v Psevdos [2015] SASC 66 Commonwealth Bank of Australia v Psevdos [2015] SASC 139 Commonwealth Bank of Australia v Psevdos [2016] FCCA 1480 Dean v Pepper Finance Corporation Ltd (Trustee) [2016] FCA 648 Elders Trustee and Executor Co Ltd v EG Reeves Pty Ltd (1987) 78 ALR 193 Gordon v Campbell (1842) 1 Bell App 428 Holden v Black (1905) 2 CLR 768 House v The King (1936) 55 CLR 499 In re Johnson; Shearman v Robinson (1880) 15 Ch D 548 Katter v Melhem (No 2) [2014] FCA 1176, (2014) 319 ALR 646 McIntosh v Shashoua (1931) 46 CLR 494 Mercedes Holdings Pty Ltd v Waters (No 2) (2010) 186 FCR 450 Muir v City of Glasgow Bank and Liquidators (1879) 4 AC 337 Octavo Investments Proprietary Limited v Knight (1979) 144 CLR 360 Picone v Velos [2007] FCA 1183 Psevdos v Commonwealth Bank of Australia [2016] FCA 844 Psevdos v Commonwealth Bank of Australia [2016] FCA 1118 Psevdos v Commonwealth Bank of Australia [2016] FCCA 978 Tov-Lev v Lowbeer (No 2) [2014] FCA 379 Vacuum Oil Company Proprietary Limited v Wiltshire (1945) 72 CLR 319 Warren v Coombes (1979) 142 CLR 531 Wentworth v Rogers (No 5) (1986) 6 NSWLR 534 Wren v Mahoney (1972) 126 CLR 212 Heydon JD and Leeming MJ, Jacobs' Law of Trusts in Australia (8th ed, Butterworths, 2016)