Re Solomon, Eddie Ex parte Reid, John Ralph [1986] FCA 60

Re Solomon, Eddie Ex parte Reid, John Ralph [1986] FCA 60

Even if the Court went behind the default judgment, the debtor is liable to the petitioner either as trustee by conduct or, alternatively, in quasi-contract, thus the debtor's arguments provide no basis for immediate dismissal or refusal to amend/adjourn the petition.

Parties
Debtor: Eddie Solomon (also known as Emmanuel Solomon); Petitioner: John Ralph Reid
Jurisdiction
Australia
Judgment Date
07 March 1986
Procedural Posture
Bankruptcy Petition / Interlocutory; Adjournment and Amendment of Petition
Outcome
Interlocutory orders made; petition adjourned; leave granted to amend.
Legal Topics
Application to Go Behind Default Judgment, Trustee and Manager Liabilities, Quasi Contract, Receiver Appointment and Effect, Interlocutory Notices and Amendments
Bankruptcy Trusts and Equity Corporations Law Application to Go Behind Default Judgment Trustee and Manager Liabilities Quasi Contract Receiver Appointment and Effect Interlocutory Notices and Amendments

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Parties

Eddie Solomon (also known as Emmanuel Solomon)

Debtor

John Ralph Reid

Petitioner

Procedural Posture

Bankruptcy Petition / Interlocutory; Adjournment and Amendment of Petition

Legal Issues

  1. 1 Whether the Court should go behind the default judgment to determine the merits of creditor's claim
  2. 2 Whether debtor is liable to petitioner as manager or trustee of the trust fund
  3. 3 Whether liability in quasi-contract arises if debtor was not a trustee

Ratio Decidendi

Even if the Court went behind the default judgment, the debtor is liable to the petitioner either as trustee by conduct or, alternatively, in quasi-contract, thus the debtor's arguments provide no basis for immediate dismissal or refusal to amend/adjourn the petition.

Court Disposition

Interlocutory orders made; petition adjourned; leave granted to amend.

Orders

  • Leave granted to the petitioner to amend the petition by adding under the debtor's name '(also known as Emmanuel Solomon)'.
  • Petition adjourned to 10 March 1986 at 2.15 pm.