Young v Thomson (Trustee), in the matter of Young (Bankrupt) (No 4) [2017] FCA 175

FEDERAL COURT OF AUSTRALIA

Young v Thomson (Trustee), in the matter of Young (Bankrupt) (No 4) [2017] FCA 175 File number(s): NSD 1738 of 2016

Judge(s): FARRELL J

Date of judgment: 28 February 2017

Catchwords: COSTS – where urgent application before start of a proceeding – where creditor of a bankrupt estate sought orders preventing costs being incurred by trustee under a litigation funding agreement – where trustee provided inadequate information to creditors of the bankrupt estate before entering into the funding agreement – trustee ordered to pay creditor's costs of the urgent application COSTS –where interlocutory application made for judicial advice pursuant to s 134 of the Bankruptcy Act 1966 (Cth) – where judicial advice given – whether costs should be paid out of the bankrupt estate or by creditor who opposed advice being given – costs to be paid out of the bankrupt estate COSTS – where substantive application made by creditor of bankrupt estate for orders against trustee pursuant to s 178 and 179 of the Bankruptcy Act 1966 (Cth) – where relief sought includes setting aside a litigation funding agreement – where creditor makes application to join funder to the proceedings on the day set down for trial of the substantive application – where Court orders funder to be joined as a party and adjourns trial date – where Court orders creditor to pay costs thrown away – where trustee subsequently seeks award of indemnity costs – award of indemnity costs refused COSTS – where application made by creditor of bankrupt estate for orders pursuant to ss 178 and 179 of the Bankruptcy Act 1966 (Cth) – where applicant creditor unsuccessful – discretion of the Court to award costs in bankruptcy proceedings – costs awarded against applicant creditor COSTS – whether stay of costs orders should be made pending appeal – stay granted