Scott (Trustee), in the matter of Price (Bankrupt) [2011] FCA 1478

Scott (Trustee), in the matter of Price (Bankrupt) [2011] FCA 1478

Mr Brandon Price was entitled to his costs of the interlocutory application because the trustee's refusal to consider reasonable requests to restrict an overly broad summons required the application, and the trustee agreed to limit the summons only after it was brought. Section 81(14) of the Bankruptcy Act 1966 (Cth) is a remedial provision conferring a broad discretion to order an examinee's costs out of the bankrupt estate when the interests of justice require it, and is not confined to cases where litigation is existing or contemplated between the trustee and examinee. It was appropriate for Mr Brandon Price to obtain legal assistance to comply with the summons because the summons was...

Jurisdiction
Australia
Judgment Date
21 December 2011
Procedural Posture
Bankruptcy Summons for Examination; Costs Application / Costs of Interlocutory Application to Set Aside Summons and Costs of Compliance With Substituted Summons
Outcome
Application allowed; costs ordered in favour of Mr Brandon Price.
Legal Topics
['summons for Examination' "examinee's Costs" 'costs Paid Out of Bankrupt Estate' 'lump Sum Costs' 'oppressive Summons' 'section 81 Examination']
['bankruptcy and Insolvency' 'civil Procedure' 'costs'] ['summons for Examination' "examinee's Costs" 'costs Paid Out of Bankrupt Estate' 'lump Sum Costs' 'oppressive Summons' 'section 81 Examination']

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 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Bankruptcy Summons for Examination; Costs Application / Costs of Interlocutory Application to Set Aside Summons and Costs of Compliance With Substituted Summons

Legal Issues

  1. 1 ['Whether Mr Brandon Price was entitled to costs of the interlocutory application to set aside the summons.' 'Whether Mr Brandon Price was entitled to costs of complying with the summons.' 'Whether costs of compliance should be paid out of the bankrupt estate pursuant to s 81(14) of the Bankruptcy Act 1966 (Cth).' 'Whether s 81(14) is limited to cases where proceedings between the trustee and examinee are in existence or contemplated.']

Ratio Decidendi

Mr Brandon Price was entitled to his costs of the interlocutory application because the trustee's refusal to consider reasonable requests to restrict an overly broad summons required the application, and the trustee agreed to limit the summons only after it was brought. Section 81(14) of the Bankruptcy Act 1966 (Cth) is a remedial provision conferring a broad discretion to order an examinee's costs out of the bankrupt estate when the interests of justice require it, and is not confined to cases where litigation is existing or contemplated between the trustee and examinee. It was appropriate for Mr Brandon Price to obtain legal assistance to comply with the summons because the summons was...

Court Disposition

Application allowed; costs ordered in favour of Mr Brandon Price.

Orders

  • ["The trustee in bankruptcy pay Mr Brandon Price's costs incurred in bringing the interlocutory application to set aside the summons fixed in the sum of $7,790." "Mr Brandon Price's costs of complying with the summons be paid out of the estate of Mr Rodney Francis Price and be fixed at $12,557."]