Michael Wilson & Partners Limited v Cronan [2023] NSWSC 1050

Supreme Court New South Wales

Medium Neutral Citation: Michael Wilson & Partners Limited v Cronan [2023] NSWSC 1050 Hearing dates: 17 August 2023 Date of orders: 1 September 2023 Decision date: 01 September 2023 Jurisdiction: Common Law Before: Schmidt AJ Decision: (1) Pursuant to subs 5(1) of the Jurisdiction of Courts (Cross-vesting) Act 1987 (NSW) and rule 44.3 of the Uniform Civil Procedure Rules 2005 (NSW), these proceedings be transferred to the Federal Court of Australia. (2) The costs of the proceedings to date and of this application are costs in the cause. Catchwords: CIVIL PROCEDURE — Cross-vesting — application for transfer under Jurisdiction of Courts (Cross-vesting) Act 1987 (NSW), subs 5(1) — application opposed — where plaintiff seeks damages for defendants' alleged breaches of their duties as trustees in bankruptcy — Court's jurisdiction — whether claims concern a "special federal matter" under Bankruptcy Act 1966 (Cth) which must be transferred — if not, whether discretion to transfer should be exercised — where Federal Court has already heard and determined proceedings in relation to the bankrupt estates and the trustees' exercise of their duties — where resolution of disputed claims will require exercise of Federal Court's jurisdiction "in bankruptcy" under s 27 of the Bankruptcy Act — matter transferred Legislation Cited: Bankruptcy Act 1966 (Cth), ss 5, 19, 19AA, 27, 58, 60, 109, 116, 120, 121, 133, 134, 230, Sch 2, cll 85-5 Bankruptcy Regulations 2021 (Cth), reg 25 Corporations Act 2001 (Cth) Insolvency Practice Rules (Bankruptcy) 2016 (Cth), rr 42-40, 42-45, 42-60, 42-135, 42-175, 42-180, 90-15 Judiciary Act 1903 (Cth), ss 39, 39B Jurisdiction of Courts (Cross-vesting) Act 1987 (Cth), ss 3, 7 Jurisdiction of Courts (Cross-vesting) Act 1987 (NSW), ss 5, 6 Uniform Civil Procedure Rules 2005 (NSW), rr 42.1, 44.3 Cases Cited: Adsett v Berlouis (1992) 37 FCR 201 BHP Billiton Ltd v Schultz (2004) 221 CLR 400; [2004] HCA 61 CGU Insurance Limited v Blakeley (2016) 259 CLR 339; [2016] HCA 2 Coshott v Parker [2017] NSWSC 1098 Credit Suisse AG v Gu (No 2) [2022] NSWSC 198 Eberstaller v Poulos (2014) 87 NSWLR 394; [2014] NSWCA 211 Felton v Mulligan (1971) 124 CLR 367; [1971] HCA 39 Fewin Pty Ltd v Burke [2015] NSWSC 1411 Gomez v Carrafa [2020] VSC 661 In the matter of Galtari Pty Ltd (in liq) [2018] NSWSC 917 LNC Industries Ltd v BMW (Australia) Ltd (1983) 151 CLR 575; [1983] HCA 31 McEwan v Burke [2023] QSC 114 Meriton Apartments Pty Ltd v Industrial Court of New South Wales (2008) 171 FCR 380; [2008] FCAFC 172 Michael Wilson & Partners Ltd v Emmott [2021] NSWCA 315 Michael Wilson & Partners Ltd v Porter [2022] FCA 336 Michael Wilson & Partners Ltd v Porter (No 2) [2022] FCA 901 Michael Wilson & Partners Ltd v Porter (No 3) [2022] FCA 998 Morris Finance Ltd v Brown (2016) 93 NSWLR 551; [2016] NSWCA 343 Palmer (Trustee), in the matter of Slater (Bankrupt) (No 2) [2016] FCA 960 Pekar v Juratowitch [2022] VSC 556 Porter, in the matter of Slater (No 3) [2021] FCA 688 Preston v Diaspora Holdings Pty Ltd [2019] NSWSC 651 Singh v Khan [2021] NSWCA 281 Truthful Endeavour Pty Ltd v Condon (2015) 233 FCR 174; [2015] FCAFC 70 Turner v Gorkowski (2014) 46 VR 609; [2014] VSCA 248 Category: Procedural rulings Parties: Michael Wilson & Partners Limited (Plaintiff) Jason Cronan (First Defendant) Terrence Van der Velde (Second Defendant) Jason Porter (Third Defendant) Richard Moretti (Fourth Defendant) Representation: Counsel: Mr P Braham SC w Mr D Neggo (Plaintiff) Ms N Bailey (Defendants) Solicitors: Mr M Wilson (Plaintiff) Mills Oakley (Defendants) File Number(s): 2023/32656