Coshott v Parker [2017] NSWSC 1098

Supreme Court New South Wales

Medium Neutral Citation: Coshott v Parker [2017] NSWSC 1098 Hearing dates: 15 August 2017 Decision date: 18 August 2017 Jurisdiction: Common Law Before: Adamson J Decision: (1) Transfer the proceedings to the Federal Court of Australia pursuant to s 6(1) of the Jurisdiction of Courts (Cross-Vesting) Act 1987 (NSW).

(2) Order the respondents/plaintiffs to pay the applicants'/defendants' costs of their application for transfer made by amended notice of motion filed on 5 May 2017. Catchwords: JURISDICTION – exclusive jurisdiction of Federal Court "in bankruptcy" – whether matters arising under the Bankruptcy Act fell within the Federal Court's exclusive jurisdiction or could be determined by State Supreme Court in the exercise of its federal jurisdiction – relevance of trustee choosing not to take an active part in claiming alleged debts as assets in the bankrupt estate of discharged bankrupt

JURISDICTION – right of set-off under s 86 of the Bankruptcy Act 1966 – HELD fell within jurisdiction "in bankruptcy" because s 86 is a code and constitutes the sole source of the creditor's right to set off in relation to mutual dealings – special federal matter – transfer to Federal Court required Legislation Cited: Bankruptcy Act 1966 (Cth), ss 5, 27, 31, 35, 35A, 58, 60, 86, 116, 134 Constitution, ss 75, 76 Judiciary Act 1903 (Cth), ss 39, 39B, Jurisdiction of Courts (Cross-Vesting) Act 1987 (Cth), ss 3, 6 Limitation Act 1969 (NSW) Cases Cited: Cooper v Moloney (No 5) [2012] SASC 211; (2012) 271 FLR 304 Day & Dent Constructions Pty Ltd (in liquidation) v North Australian Properties Pty Ltd (provisional liquidator appointed) (1982) 150 CLR 85; [1982] HCA 20 Day & Dent Constructions Pty Ltd (in liquidation) v North Australian Properties Pty Ltd (provisional liquidator appointed) (1981) 34 ALR 595 Gorkowski v Turner [2014] VSC 200; (2014) 285 FLR 66 Hiley v Peoples Prudential Assurance Co Ltd (in liq) (1938) 60 CLR 468; [1938] HCA 40 Jakimowicz v Jacks [2016] VSCA 42; (2016) 306 FLR 51 Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20; (2016) 111 ACSR 277 Meriton Apartments Pty Ltd v Industrial Court of New South Wales (2008) 171 FCR 380; [2008] FCAFC 172 Morris Finance Ltd v Brown [2016] NSWCA 343; (2016) 315 FLR 469 Moss v Eaglestone (2011) 83 NSWLR 476; [2011] NSWCA 404 Re Wakim; Ex Parte McNally (1999) 198 CLR 511; [1999] HCA 27 Scott v Bagshaw (2000) 99 FCR 573; [2000] FCA 816 Truthful Endeavour Pty Ltd v Condon (2015) 233 FCR 174; [2015] FCAFC 70 Category: Principal judgment Parties: Ljiljana Coshott and Robert Gilbert Coshott formerly trading as Robert G Coshott & Associates (Respondents/Plaintiffs) Michelle Lena Parker (Applicant/ First Defendant) Christina Marie Collins (Applicant/Second Defendant) Representation: Counsel: O Jones (Respondents/Plaintiffs) M Castle (Applicants/First and Second Defendants)