Firth v Centrelink & Anor [2002] NSWSC 564

Reported Decision : (2002) 55 NSWLR 451

New South Wales Supreme Court

CITATION : Firth v Centrelink & Anor [2002] NSWSC 564 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 1500/02 HEARING DATE(S) : 30 May 2002 JUDGMENT DATE : 10 July 2002

Stephen Paul Firth (Plaintiff) PARTIES : Centrelink (Formerly known as The Department of Social Security) (First Defendant) Commonwealth of Australia (Second Defendant) JUDGMENT OF : Campbell J

COUNSEL : R Goodridge (Plaintiff) T Reilly (Defendants) SOLICITORS : Firths The Compensation Lawyers (Plaintiff) Australian Government Solicitor (Defendants) CATCHWORDS : ADMINISTRATIVE LAW - Judical Review legislation - claim that issue of statutory garnishee notice under section 1233 Social Security Act 1991 (Cth) is invalid - whether Supreme Court has jurisidiction to determine - EQUITY - equitable charges and liens - solicitor's "fruits of the action" lien - attributes - whether notice by solicitor to fundholder that solicitor claims to be paid costs from the fund is necessary for existence of the lien - SOCIAL WELFARE - social security payments - whether section 1233 Social Security Act 1991 (Cth) enables Commonwealth to receive the amount of a judgment debt owed to someone who is a debtor to the Commonwealth concerning overpaid social security payments, notwithstanding the existence of a solicitor's "fruits of the action" lien over that judgment - PROFESSIONS AND TRADES - lawyers - "fruits of the action" lien - costs and disbursements which are within the scope of the lien - whether interest is payable on amount of the lien Administrative Decisions (Judicial Review) Act 1977 (Cth) Commonwealth Services Delivery Agency Act 1997 (Cth) Freedom of Information Act 1982 (Cth) LEGISLATION CITED : Income Tax Assessment Act 1936 (Cth) Legal Practitioners Act 1898 (NSW) Social Security Act 1991 (Cth) Supreme Court Act 1970 (NSW) Aerolineas Argentinas v Federal Airport Corporation (1993) 32 NSWLR 595 Akki Pty Ltd v Martin Hall Pty Ltd (1994) 35 NSWLR 470 Carew Counsel Pty Ltd v French [2002] VSCA 1 Clissold v Perry (1904) 1 CLR 363 Cole v Eley [1894] 2 QB 180 Color Point Pty Ltd v Markby's Communication Group Pty Ltd [1998] 1516 FCA (Weinberg J, 27 November 1998, unreported) Commonwealth v Hazeldell Ltd (1918) 25 CLR 552 Commonwealth of Australia v Hazeldell Ltd [1921] 2 AC 373 Commissioner of Taxation v Donnelly (1989) 25 FCR 432 Commissioner of Taxation v Government Insurance Office of NSW (1992) 36 FCR 314 Dallow v Garold; Ex parte Adams (1884) 14 QB D 543 Delmore Pty Ltd v Commonwealth of Australia (1985) 2 NSWLR 179 Ex Parte Patience; Makinson v The Minister (1940) 40 SR (NSW) 96 Faithfull v Ewen (1878) 7 Ch D 495 Guy v Churchill (1887) 35 Ch D 489 Grogan v Orr [2001] NSWCA 114 Haymes v Cooper (1864) 33 Beav 431; 55 ER 435 Heid v Reliance Finance Corporations Pty Ltd (1983) 154 CLR 326 Hewett v Court (1983) 149 CLR 639 In Re Blake; Clutterbuck v Bradford [1945] 1 Ch 61 In Re Born; Curnock v Born [1900] 2 Ch 433 In Re Drax; Savile v Drax [1903] 1 Ch 781 CASES CITED : In Re Massey (1870) LR 9 Eq 367; 18 WR 444 In Re Meter Cabs [1911] 2 Ch 557 In The Estate of Fuld (No 4) [1968] P 727 Jeffcott Holdings Ltd (in liq) v Paior (1995) 18 ACSR 213 Jennings v Mather [1902] 1 KB 5 Johns v Cassel (1993) 6 BPR 13,134 Kelso v McCulloch (Young J, Supreme Court of NSW, 24 October 1994, unreported) Kison v Papasian (1994) 61 SASR 567 Leamey v Heath [2001] NSWSC 1095 Macquarie Health Corp Ltd v Commissioner of Taxation (1999) 96 FCR 238 Murdocca v Murdocca (No2) [2002] NSWSC 505 North West Construction Co Pty Ltd (In Liquidation) v Marian [1965] WAR 205 Ormerod v Tate (1801) 1 East 464 Phillipa Power & Associates v Primrose Couper Cronin Rudkin [1997] 2 Qd R 266 Re de Groot [2001] 2 Qd R 359 Read v Dupper (1795) 6 TR 361; 101 ER 595 Reliance Finance Corporation Pty Ltd v Heid [1982] 1 NSWLR 466 Roam Australia Pty Ltd v Telstra Corporation Ltd [1997] FCA 980 (Lehane J, 22 September 1997, unreported) Ross v Buxton [1889] 42 Ch D 190 Townsend v Reade (1835) 4 LJ Ch 233 Twigg v Keady (1996) 135 FLR 257 Welsh v Hole (1779) 1 Dougl. 238; 99 ER 155 Worrell v Power & Power (1993) 46 FCR 214 Zuks v Jackson MacDonald (1996) 132 FLR 317 DECISION : Lien exists; Section 1233 notice does not entitle Commonwealth to amount for which lien exists; Commonwealth not a bona fide purchaser for value without notice; No defence of laches made out; Lien bears interest; Plaintiff ordered to bring in Short Minutes of Order