Bertram v Naudi (No 2) [2024] FCA 1239

The legal services provided to the applicant during bankruptcy, paid for or obligingly paid for by third parties (Richard/Darisha), constituted a benefit within the meaning of s 139L(1)(a)(v) of the Bankruptcy Act and thus assessable income; the trustee's assessments were lawfully and rationally made and not invalid or void.

Parties: Applicant: David Morton Bertram; Respondent: Robert William Naudi
Jurisdiction: Australia
Judgment Date: 25 October 2024
Procedural Posture: Application Under Bankruptcy / Judgment After Final Hearing
Outcome: Application dismissed; cross-claim allowed
Legal Topics: Income Contribution Assessments, Legal Services as Fringe Benefits, Trustee Powers and Reviews

Bankruptcy Insolvency Income Contribution Assessments Legal Services as Fringe Benefits Trustee Powers and Reviews

Case Brief

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Full judgment text Downloadable case file Legal principles 3 Authorities cited 26 Party arguments 2 Amounts and remedies 1

Parties

David Morton Bertram

Applicant

Robert William Naudi

Respondent

Procedural Posture

Application Under Bankruptcy / Judgment After Final Hearing

Legal Issues

1 Whether legal services paid for by a third party provided a benefit amounting to income under s 139L(1)(a)(v) or (vi) of the Bankruptcy Act
2 Whether the trustee's income assessments were void or invalid
3 Whether the trustee acted lawfully and rationally in making the assessments

Ratio Decidendi

Court Disposition

Application dismissed; cross-claim allowed

Orders

The application is dismissed.
Judgment for the respondent on the cross-claim in the sum of $162,968.34 plus pre-judgment interest to be calculated.