Paine, in the matter of Advanced Fuel Tanks Pty Ltd (in liq) v Turner [2022] FCA 425

Paine, in the matter of Advanced Fuel Tanks Pty Ltd (in liq) v Turner [2022] FCA 425

It is appropriate to join the Insurers as defendants because the Liquidator’s proposed claim for relief (to enforce insurance indemnity in the event the Directors are found liable, become bankrupt, and indemnity is due) raises a justiciable controversy, and such joinder is necessary to determine a related dispute and avoid multiplicity of proceedings under r 9.05(1)(b)(iii) of the Rules.

Parties
First Plaintiff: Darrin Edward Paine as Liquidator of Advanced Fuel Tanks Pty Ltd (In Liquidation) ACN 603 199 426; Second Plaintiff: Advanced Fuel Tanks Pty Ltd (In Liquidation) ACN 603 199 426; First Defendant: Anthony Douglas Turner; Second Defendant: Grant Andrew Slater; Third Defendant: Keith Edward Tann
Jurisdiction
Australia
Judgment Date
22 April 2022
Procedural Posture
Application / Interlocutory Application for Joinder of Parties
Outcome
Application granted
Legal Topics
Joinder of Parties, Company Directors' Duties, Bankruptcy and Insurance Proceeds
Practice and Procedure Insolvency Corporations Joinder of Parties Company Directors' Duties Bankruptcy and Insurance Proceeds

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 4 Party arguments 2
Sign in to unlock

Parties

Darrin Edward Paine as Liquidator of Advanced Fuel Tanks Pty Ltd (In Liquidation) ACN 603 199 426

First Plaintiff

Advanced Fuel Tanks Pty Ltd (In Liquidation) ACN 603 199 426

Second Plaintiff

Anthony Douglas Turner

First Defendant

Grant Andrew Slater

Second Defendant

Keith Edward Tann

Third Defendant

Procedural Posture

Application / Interlocutory Application for Joinder of Parties

Legal Issues

  1. 1 Whether insurers should be joined as defendants under r 9.05 of the Federal Court Rules 2011 (Cth)
  2. 2 Whether a justiciable controversy exists between the Liquidator and the Insurers in light of contingent application of s 117 of the Bankruptcy Act 1966 (Cth)

Ratio Decidendi

It is appropriate to join the Insurers as defendants because the Liquidator’s proposed claim for relief (to enforce insurance indemnity in the event the Directors are found liable, become bankrupt, and indemnity is due) raises a justiciable controversy, and such joinder is necessary to determine a related dispute and avoid multiplicity of proceedings under r 9.05(1)(b)(iii) of the Rules.

Court Disposition

Application granted

Orders

  • Hardy (Underwriting Agencies) Limited, Liberty Managing Agency Limited, Arch Underwriting at Lloyd's Limited, and Asta Managing Agency Ltd (for Everest Syndicate 2786) are joined as defendants to the proceedings
  • Plaintiffs have leave to file and serve the amended originating process and a second amended statement of claim