Federal Court of Australia
Federal Court of Australia
Muriniti v Lawcover Insurance Pty Ltd [2023] FCA 33 File numbers: NSD 1777 of 2019 NSD 1893 of 2019
Judgment of: MOSHINSKY J
Date of judgment: 30 January 2023
Catchwords: BANKRUPTCY – applications to set aside bankruptcy notices – where the applicants were legal practitioners and held professional indemnity insurance with the respondent (the Insurer) at the relevant time – where personal costs orders were made against the applicants by the Land and Environment Court – where the Insurer granted indemnity to the applicants in respect of the personal costs orders –where there was subsequent litigation between the Insurer and the applicants in the Supreme Court of NSW – where the Insurer was successful in that litigation and the applicants were ordered to pay indemnity costs of $294,912 – where the applicants failed to pay the judgment debt and the Insurer caused bankruptcy notices to be issued against the applicants based on the judgment debt and interest ($324,327) – where the applicants applied to this Court to set aside the bankruptcy notices on the basis of a counterclaim – where the applicants sought leave to "go behind" the judgments of the Supreme Court – whether the bankruptcy notices should be set aside – applications dismissed
Legislation: Bankruptcy Act 1966 (Cth), ss 30, 40, 52
Cases cited: Ebert v Union Trustee Co of Australia Ltd (1960) 104 CLR 346 Gomez v State Bank of New South Wales Ltd [2002] FCAFC 101 Gould v Day [1999] FCA 1650 Lawcover Insurance Pty Ltd v Muriniti [2017] NSWSC 1557 Lawcover Insurance Pty Ltd v Muriniti (No 2) [2018] NSWSC 558 Muriniti v King [2019] NSWCA 232 Muriniti v Lawcover Insurance Pty Ltd (No 2) [2018] NSWCA 311 Ramsay Health Care Australia Pty Ltd v Compton (2017) 261 CLR 132 Re Brink; Ex parte Commercial Banking Co of Sydney Ltd (1980) 30 ALR 433 Re Capsanis; Capsanis v Owners – Strata Plan 11727 [2000] FCA 1262 Re Glew; Glew v Harrowell of Hunt & Hunt Lawyers (2003) 198 ALR 331 Rippon v Chilcotin Pty Ltd (2001) 53 NSWLR 198 Sayer-Jones v Juju Bean Investments Pty Ltd [2020] FCA 177 Wren v Mahony (1972) 126 CLR 212 Young v King [2013] NSWCA 364 Young v King [2016] NSWCA 282 Young v King (No 4) [2012] NSWLEC 236 Young v King (No 6) [2015] NSWLEC 111 Young v King (No 8) [2015] NSWLEC 187 Young v King (No 9) [2016] NSWLEC 4 Young v King (No 11) [2017] NSWLEC 34
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