Cooper, in the matter of Chopsonion Pty Ltd (Receivers and Managers Appointed) v Chopsonion Pty Ltd (Receivers and Managers Appointed) (No 2) [2018] FCA 1504

Cooper, in the matter of Chopsonion Pty Ltd (Receivers and Managers Appointed) v Chopsonion Pty Ltd (Receivers and Managers Appointed) (No 2) [2018] FCA 1504

The contempt was serious and deliberate, involved lengthy non-compliance with an order requiring delivery of corporate books and records to receivers, and required a penalty. Although Mr Sharpe was bankrupt, had no present capacity to pay, and circumstances could point towards custody, a custodial or suspended custodial sentence was not imposed because the order had been complied with, he had received poor advice, he had health issues, and he performed carer duties for his mother. The appropriate penalty was a pecuniary penalty of $15,000, and the plaintiffs were entitled to indemnity costs.

Jurisdiction
Australia
Judgment Date
09 October 2018
Procedural Posture
Contempt Proceeding Arising in a Commercial and Corporations Matter / Penalty and Costs After Contempt Finding
Outcome
Mr James Trevor Sharpe was declared to have committed contempt, ordered to pay a pecuniary penalty of $15,000 to the Registrar within 28 days, and ordered to pay the plaintiffs' costs on an indemnity basis.
Legal Topics
['penalty for Contempt' 'pecuniary Penalty for Contempt and Bankruptcy' 'indemnity Costs in Contempt Proceedings' "receivers' Access to Corporate Books and Records" 'custodial Sentence as a Penalty for Contempt']
['contempt' 'costs' 'bankruptcy and Insolvency' 'corporations'] ['penalty for Contempt' 'pecuniary Penalty for Contempt and Bankruptcy' 'indemnity Costs in Contempt Proceedings' "receivers' Access to Corporate Books and Records" 'custodial Sentence as a Penalty for Contempt']

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Procedural Posture

Contempt Proceeding Arising in a Commercial and Corporations Matter / Penalty and Costs After Contempt Finding

Legal Issues

  1. 1 ["What penalty should be imposed on Mr James Trevor Sharpe for contempt in failing to comply with the Court's order of 26 August 2016." "Whether Mr Sharpe's bankruptcy and lack of present capacity to pay should lead away from a pecuniary penalty and towards a custodial sentence." 'Whether there were good reasons not to impose a custodial sentence or suspended custodial sentence.' 'Whether the plaintiffs should receive indemnity costs.']

Ratio Decidendi

The contempt was serious and deliberate, involved lengthy non-compliance with an order requiring delivery of corporate books and records to receivers, and required a penalty. Although Mr Sharpe was bankrupt, had no present capacity to pay, and circumstances could point towards custody, a custodial or suspended custodial sentence was not imposed because the order had been complied with, he had received poor advice, he had health issues, and he performed carer duties for his mother. The appropriate penalty was a pecuniary penalty of $15,000, and the plaintiffs were entitled to indemnity costs.

Court Disposition

Mr James Trevor Sharpe was declared to have committed contempt, ordered to pay a pecuniary penalty of $15,000 to the Registrar within 28 days, and ordered to pay the plaintiffs' costs on an indemnity basis.

Orders

  • ['Mr James Trevor Sharpe has committed a contempt in failing to comply between 17 September 2016 and 19 February 2018 with the order made by the Court on 26 August 2016.' 'Mr Sharpe pay to the Registrar of this Court within 28 days a pecuniary penalty of $15,000 in respect of the contempt referred to in the...