Jackson v Salsbury (No3) [2000] FCA 1840

Jackson v Salsbury (No3) [2000] FCA 1840

Where a trustee, acting in exercise of discretion rather than pursuant to statutory obligation, brings unsuccessful litigation to recover property claimed as part of a bankrupt estate, he is personally liable for the respondent's costs. However, if he acted reasonably and honestly, he is entitled to be indemnified for those costs from available funds of the bankrupt estate.

Jurisdiction
Australia
Judgment Date
14 December 2000
Procedural Posture
Bankruptcy Proceeding / Post Judgment Costs Determination
Outcome
Applicant personally liable for respondent's costs but entitled to indemnity from bankrupt estate funds to the extent available.
Legal Topics
['costs Liability of Trustees' 'bankrupt Estate Property Recovery' 'indemnity From Estate Funds']
['bankruptcy' 'costs'] ['costs Liability of Trustees' 'bankrupt Estate Property Recovery' 'indemnity From Estate Funds']

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Procedural Posture

Bankruptcy Proceeding / Post Judgment Costs Determination

Legal Issues

  1. 1 ['Whether the trustee is personally liable for costs after bringing unsuccessful proceedings to recover property claimed as part of a bankrupt estate' 'Whether the trustee is entitled to indemnification from the bankrupt estate for such costs']

Ratio Decidendi

Where a trustee, acting in exercise of discretion rather than pursuant to statutory obligation, brings unsuccessful litigation to recover property claimed as part of a bankrupt estate, he is personally liable for the respondent's costs. However, if he acted reasonably and honestly, he is entitled to be indemnified for those costs from available funds of the bankrupt estate.

Court Disposition

Applicant personally liable for respondent's costs but entitled to indemnity from bankrupt estate funds to the extent available.

Orders

  • ['The applicant is personally liable to the respondent for the costs ordered to be paid by him on 9 August 2000.' 'The applicant is entitled to be indemnified in respect of that liability from any funds remaining in the bankrupt estate.']