Thompson v Lane (Trustee) (No 4) [2022] FCA 616

Federal Court of Australia

Thompson v Lane (Trustee) (No 4) [2022] FCA 616 File number: QUD 113 of 2021

Judgment of: LOGAN J

Date of judgment: 24 May 2022

Catchwords: COSTS – application for annulment of bankruptcy – where applicant unsuccessful – where costs sought by creditor who took active role as contradictor – where creditor sought lump-sum costs order and for costs to be paid in the same priority as provided for in s 109(1)(a) of the Bankruptcy Act 1966 (Cth) – where role of creditor as contradictor preserved property of bankrupt estate for distribution amongst creditors generally – where evidence in support of lump-sum costs application did not conform with Costs Practice Note (GPN-COSTS) – where evidence was sufficient to form basis upon which lump-sum order could be made – where evidence raised interrogative note over reasonableness of costs claimed – where Registrar better placed to assess reasonableness of costs claimed – where trustee sought costs – where role of trustee was neutral – creditor and trustee entitled to costs paid out of bankrupt's estate in accordance with the priority in s 109(1)(a) of the Bankruptcy Act 1966 (Cth) – costs of the creditor and trustee be fixed on a lump-sum basis by a Registrar

Legislation: Bankruptcy Act 1966 (Cth) ss 32, 109 Federal Court of Australia Act 1976 (Cth) s 43 Federal Court (Bankruptcy) Rules 2016 (Cth) r 13.01(2) Federal Court Rules 2011 (Cth) r 40.02(b), r 40.02(c)

Cases cited: Bayles v Nominal Defendant [2012] FMCA 184 Beach Petroleum NL v Johnson (No 2) (1995) 57 FCR 119 Kerr v Bechara (No 2) [2015] FCA 444 Lawman v Queensland Building Services Authority [2000] FCA 174 Oshlack v Richmond River Council (1998) 193 CLR 72 Seven Network Ltd v News Ltd [2007] FCA 2059 Thompson v Lane (Trustee) (No 3) [2022] FCA 128 Wide Bay Conservation Council Inc v Sunwater Pty Ltd (No 9) (2011) 194 FCR 250