Garrett, in the matter of Company One [2016] FCA 703

Garrett, in the matter of Company One [2016] FCA 703

Leave to institute the proposed proceeding was refused as the proposed proceeding is vexatious: it is bound to fail as Mr Garrett is not qualified to act as a receiver due to his status as an undischarged bankrupt and is disqualified from managing corporations under the Corporations Act 2001 (Cth). The application was held to lack reasonable grounds and was brought, at least in part, to harass and annoy others and for a wrongful purpose.

Parties
Plaintiff: Andrew Morton Garrett; Entity Named in Title: Company One; Entity Named in Title: Company Two; Entity Named in Title: Company Three; Entity Named in Title: Company Four; Entity Named in Title: Company Five; Entity Named in Title: Company Six; Entity Named in Title: Company Seven; Entity Named in Title: Company Eight
Jurisdiction
Australia
Judgment Date
10 June 2016
Procedural Posture
Application for Leave to Institute Proceeding (practice and Procedure) / Judgment on Application for Leave to Institute Proceeding
Outcome
Application dismissed
Legal Topics
Vexatious Proceedings, Leave to Commence Proceedings, Receivers and Managers, Disqualification From Managing Corporations, Declaratory Relief
Practice and Procedure Corporations Law Vexatious Proceedings Leave to Commence Proceedings Receivers and Managers Disqualification From Managing Corporations Declaratory Relief

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Parties

Andrew Morton Garrett

Plaintiff

Company One

Entity Named in Title

Company Two

Entity Named in Title

Company Three

Entity Named in Title

Company Four

Entity Named in Title

Company Five

Entity Named in Title

Company Six

Entity Named in Title

Company Seven

Entity Named in Title

Company Eight

Entity Named in Title

Procedural Posture

Application for Leave to Institute Proceeding (practice and Procedure) / Judgment on Application for Leave to Institute Proceeding

Legal Issues

  1. 1 Whether the applicant should be granted leave to institute proceedings while subject to a vexatious proceedings order under s 37AO(2) of the Federal Court of Australia Act 1976 (Cth)
  2. 2 Whether the proposed proceeding is vexatious as defined in s 37AM(1) of the Federal Court of Australia Act 1976 (Cth)
  3. 3 Whether Mr Garrett is validly appointed as 'controller' of the companies despite being a disqualified person and undischarged bankrupt

Ratio Decidendi

Leave to institute the proposed proceeding was refused as the proposed proceeding is vexatious: it is bound to fail as Mr Garrett is not qualified to act as a receiver due to his status as an undischarged bankrupt and is disqualified from managing corporations under the Corporations Act 2001 (Cth). The application was held to lack reasonable grounds and was brought, at least in part, to harass and annoy others and for a wrongful purpose.

Court Disposition

Application dismissed

Orders

  • The application is dismissed.
  • The eight entities named in the title to these proceedings be referred to by pseudonyms.