Laughton v Gye [2019] FCA 2165

Laughton v Gye [2019] FCA 2165

From 12 July 2018, when the judgment sum was paid into court, the applicant became a secured creditor and could not pursue the Creditor's Petition as an unsecured creditor. Accordingly, he was only entitled to his costs up to that date. The respondent was entitled to costs incurred after that date, excluding the case management hearing on 18 July 2018.

Parties
Applicant: Gregory Allan Laughton; Respondent: Clement Anthony Gye
Jurisdiction
Australia
Judgment Date
20 December 2019
Procedural Posture
Costs Determination Following Dismissal of Creditor's Petition / Post Dismissal, Costs Allocation
Outcome
Mixed costs orders: some costs awarded to applicant, others to respondent.
Legal Topics
Costs, Creditor's Petition, Secured Creditor Status, Lump Sum Costs Assessment
Bankruptcy Civil Procedure Costs Creditor's Petition Secured Creditor Status Lump Sum Costs Assessment

Case Brief

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Parties

Gregory Allan Laughton

Applicant

Clement Anthony Gye

Respondent

Procedural Posture

Costs Determination Following Dismissal of Creditor's Petition / Post Dismissal, Costs Allocation

Legal Issues

  1. 1 Whether the applicant was a secured creditor under s 4 of the Bankruptcy Act 1966 (Cth) following payment into the Supreme Court of New South Wales.
  2. 2 Whether the respondent is entitled to indemnity costs.
  3. 3 Whether the applicant's costs should be determined on a lump sum basis under r 40.02(b) of the Federal Court Rules 2011 (Cth).

Ratio Decidendi

From 12 July 2018, when the judgment sum was paid into court, the applicant became a secured creditor and could not pursue the Creditor's Petition as an unsecured creditor. Accordingly, he was only entitled to his costs up to that date. The respondent was entitled to costs incurred after that date, excluding the case management hearing on 18 July 2018.

Court Disposition

Mixed costs orders: some costs awarded to applicant, others to respondent.

Orders

  • The respondent pay the applicant's costs of the Creditor's Petition prior to 12 July 2018 in the sum of $4,138.30.
  • The applicant pay the respondent's costs of the Creditor's Petition from 12 July 2018 (excluding the costs of the 18 July 2018 case management hearing) in a sum to be taxed if not agreed.