Lo Pilato (Trustee) v Kamy Saeedi Lawyers Pty Ltd, in the matter of Adzic (Bankrupt) [2017] FCA 34

FEDERAL COURT OF AUSTRALIA

Lo Pilato (Trustee) v Kamy Saeedi Lawyers Pty Ltd, in the matter of Adzic (Bankrupt) [2017] FCA 34 File number: ACD 68 of 2014

Judge: KATZMANN J

Date of judgment: 31 January 2017

Catchwords: BANKRUPTCY AND INSOLVENCY — Transfer of real property by debtor within two years of bankruptcy — whether void as against trustee in bankruptcy under ss 120 and/or 121 and/or 122 of the Bankruptcy Act 1966 (Cth) or s 239 of the Civil Law (Property) Act 2006 (ACT) — whether consideration offered for sale of house below market value — whether vendor insolvent at time of transfer — meaning of "time of transfer" — whether transfer made with intent to defraud or defeat creditors or hinder or delay distribution of assets — extent of relief where house on-sold to purchaser for value BANKRUPTCY AND INSOLVENCY — Transfer of property by debtor within two years of bankruptcy — whether grant by debtor of personal guarantee and charge over real property in each of four costs agreements made with a firm of solicitors void under s 121 of the Bankruptcy Act 1966 (Cth) as a transfer of property made with intent to defraud or defeat creditors or hinder or delay distribution of assets — whether transfer of part of proceeds of settlement to solicitors for the vendor's company void as against trustee in bankruptcy under ss 120, 121 and/or 122 of Act — whether payment made on behalf of debtor's company or in discharge of his obligations under the guarantees — whether transfer for no consideration or for consideration below market value — whether payment made with intent to defraud or defeat creditors or hinder or delay distribution of assets — whether effect of payment to give solicitors a preference, priority or advantage over other creditors JURISDICTION — Cross-vesting of jurisdiction — where applicant seeks order under s 288 of the Legal Profession Act 2006 (ACT) — whether Court has jurisdiction to make such an order COSTS — Lawyers — whether charging provision and guarantee clause in several costs agreements "not fair or reasonable" — failure to comply with disclosure obligations to client and third party payer — intimate relationship between solicitor and client