Mokhtar v Piscopo (No 2) [2025] FCA 21

Mokhtar v Piscopo (No 2) [2025] FCA 21

Given the applicant's success in the application for removal of the trustee, the general rule that costs follow the event applies. Although there was no finding of trustee misconduct, deficiencies in the trustee's judgment and lack of objectivity in administering the estate justified an order that the trustee personally pay the applicant's costs without indemnity from the estate. The court is also empowered to direct that such costs be paid directly to pro bono counsel pursuant to the applicable rules.

Parties
Applicant: Ahmad Shib Mokhtar; Respondent: Samuel Piscopo
Jurisdiction
Australia
Judgment Date
28 January 2025
Procedural Posture
Bankruptcy Application for Removal of Trustee / Costs Judgment
Outcome
Applicant's costs awarded; respondent trustee to pay costs personally and not indemnified from the estate; costs payable directly to applicant's pro bono counsel.
Legal Topics
Costs Orders, Removal of Trustee, Indemnity of Trustees, Pro Bono Legal Costs
Bankruptcy Insolvency Civil Procedure Costs Orders Removal of Trustee Indemnity of Trustees Pro Bono Legal Costs

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Parties

Ahmad Shib Mokhtar

Applicant

Samuel Piscopo

Respondent

Procedural Posture

Bankruptcy Application for Removal of Trustee / Costs Judgment

Legal Issues

  1. 1 Whether the applicant should be awarded costs after successfully seeking removal of trustee
  2. 2 Whether the respondent trustee should be personally liable for costs and denied indemnity from the estate
  3. 3 Whether costs can be awarded in favour of pro bono counsel

Ratio Decidendi

Given the applicant's success in the application for removal of the trustee, the general rule that costs follow the event applies. Although there was no finding of trustee misconduct, deficiencies in the trustee's judgment and lack of objectivity in administering the estate justified an order that the trustee personally pay the applicant's costs without indemnity from the estate. The court is also empowered to direct that such costs be paid directly to pro bono counsel pursuant to the applicable rules.

Court Disposition

Applicant's costs awarded; respondent trustee to pay costs personally and not indemnified from the estate; costs payable directly to applicant's pro bono counsel.

Orders

  • The respondent is to pay the applicant's costs of the proceedings.
  • The respondent is personally liable for the costs in order 1.