Farrow, R.W.M. v Vince, P. (Trustee of the Estate of the Bankrupt) [1995] FCA 272

Farrow, R.W.M. v Vince, P. (Trustee of the Estate of the Bankrupt) [1995] FCA 272

The Court refused to exercise the supervisory power under section 178 because there was no sufficient evidence of any confidential information being passed between Mr Vince and Mr Hodgson, no material showing a real and sensible possibility of conflict of interest, and the evidence showed that Mr Vince had been appointed in his personal capacity as agent of the trustee rather than as a partner of Ferrier Hodgson.

Jurisdiction
Australia
Judgment Date
09 March 1995
Procedural Posture
Bankruptcy Application Under Section 178 of the Bankruptcy Act 1966 / Reasons for Judgment on Application by an Undischarged Bankrupt Seeking to Preclude Engagement of an Agent in Administration of the Bankrupt Estate
Outcome
Application dismissed.
Legal Topics
['review of Trustee Acts, Omissions or Decisions Under Section 178 of the Bankruptcy Act 1966' 'appointment of Agent by Trustee Under Paragraph 134(1)(i) of the Bankruptcy Act 1966' 'conflict of Interest' 'confidential Information' 'chinese Wall']
['bankruptcy' 'insolvency' 'equity and Professional Responsibility'] ['review of Trustee Acts, Omissions or Decisions Under Section 178 of the Bankruptcy Act 1966' 'appointment of Agent by Trustee Under Paragraph 134(1)(i) of the Bankruptcy Act 1966' 'conflict of Interest' 'confidential Information' 'chinese Wall']

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Procedural Posture

Bankruptcy Application Under Section 178 of the Bankruptcy Act 1966 / Reasons for Judgment on Application by an Undischarged Bankrupt Seeking to Preclude Engagement of an Agent in Administration of the Bankrupt Estate

Legal Issues

  1. 1 ['Whether the Court should exercise its power under section 178 of the Bankruptcy Act 1966 to preclude the Trustee in Bankruptcy from engaging Mr Peter Vince or any other member or employee of Ferrier Hodgson to assist in administration of the bankrupt estate.' 'Whether there was a real and sensible possibility of conflict of interest or misuse of confidential information because Mr Vince and Mr Hodgson were partners in Ferrier Hodgson, while Mr Hodgson was liquidator of companies associated with Mr Farrow and an indemnifying creditor.']

Ratio Decidendi

The Court refused to exercise the supervisory power under section 178 because there was no sufficient evidence of any confidential information being passed between Mr Vince and Mr Hodgson, no material showing a real and sensible possibility of conflict of interest, and the evidence showed that Mr Vince had been appointed in his personal capacity as agent of the trustee rather than as a partner of Ferrier Hodgson.

Court Disposition

Application dismissed.

Orders

  • ['The application is dismissed.']