Psevdos v Macko Corporation Pty Ltd as Trustee for the Macko Corporation Trust [2024] FCA 520

Federal Court of Australia

Psevdos v Macko Corporation Pty Ltd as Trustee for the Macko Corporation Trust [2024] FCA 520 Appeal from: Macko (Trustee), in the matter of Psevdos (Bankrupt) v Psevdos [2023] FedCFamC2G 13

File number(s): SAD 23 of 2023

Judgment of: O'SULLIVAN J

Date of judgment: 17 May 2024

Catchwords: BANKRUPTCY — appeal from decision of the Federal Circuit and Family Court of Australia affirming sequestration order — whether primary judge erred in law or fact in finding that the appellant has personal liability for debts incurred in the performance of a trust — whether the bankruptcy proceedings brought by the respondent are an abuse of process — appeal dismissed

Legislation: Bankruptcy Act 1966 (Cth), ss 40, 40(1)(g), 41(1), 43(1), 52, 52(1), (2)(a)

Cases cited: Aon Risk Management Limited v Australian National University [2009] HCA 27; (2009) 239 CLR 175 Codelfa Construction Pty Ltd v State Rail Authority of NSW [1982] HCA 29; (1982) 149 CLR 337 Elders Trustee and Executor Co Ltd v E G Reeves Pty Ltd [1987] FCA 603; (1987) 78 ALR 193 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; (2014) 251 CLR 640 Gordon v Campbell (1842) 1 Bell App 428 Helvetic Investments v Knight (1984) 9 ACLR 773 Lumsden v Buchanan (1865) 4 Macq 950 Macko (Trustee), in the matter of Psevdos (Bankrupt) v Psevdos [2023] FedCFamC2G 13 Maybury v Atlantic Union Oil Co Ltd [1953] HCA 89; (1953) 89 CLR 507 Muir v City of Glasgow Bank and Liquidators (1879) 4 AC 337 Pacific Carriers Ltd v BNP Paribas [2004] HCA 35; (2004) 218 CLR 451 Psevdos v Commonwealth Bank of Australia (No 2) [2017] FCA 19 Re Interwest Hotels Pty Ltd (in liq) (1993) 12 ACSR 78 Re Majory; Ex parte Debtor v FA Dumont [1955] Ch 600 Re Sarina; Ex parte Wollondilly Shire Council [1980] FCA 175; (1980) 32 ALR 596 Rogers v The Queen [1994] HCA 42; (1994) 181 CLR 251 Rozenbes v Kronhill [1956] HCA 65; (1956) 95 CLR 407 Totev v Sfar [2008] FCAFC 35; (2008) 167 FCR 193 Williams v Spautz [1992] HCA 39; (1992) 174 CLR 509 Jacobs Law of Trusts in Australia, 8th ed, Butterworths, (2016)