Hurdis v Jones (Trustee), in the matter of Hurdis [2022] FCA 980

Hurdis v Jones (Trustee), in the matter of Hurdis [2022] FCA 980

Leave is granted to file an amended statement of claim in the proposed form subject to the exclusion or qualification of certain paragraphs that fail to disclose a reasonable cause of action or are likely to cause prejudice, embarrassment, or delay. Claims for misleading and deceptive conduct and unconscionability, to the extent they relate to personal injury or wrong, are arguably maintainable by the discharged bankrupt; however, the applicant lacks standing to seek generalized declarations regarding trustee fitness, and claims for aggravated and exemplary damages are limited or unavailable as a matter of law.

Parties
Applicant: Mark Andrew Hurdis; First Respondent: Michael Jones in his capacity as Trustee of the Bankrupt Estates of Mark Andrew Hurdis; Second Respondent: Adam Anthony Coombs
Jurisdiction
Australia
Judgment Date
22 August 2022
Procedural Posture
Practice and Procedure / Interlocutory Application for Leave to File Amended Statement of Claim
Outcome
Interlocutory application granted in part (leave to amend statement of claim subject to exclusions); costs ordered against applicant at 75%.
Legal Topics
Misleading and Deceptive Conduct, Trustee Duties, Unconscionability, Pleading Requirements, Remedies in Equity
Bankruptcy Consumer Law Equity Misleading and Deceptive Conduct Trustee Duties Unconscionability Pleading Requirements Remedies in Equity

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Parties

Mark Andrew Hurdis

Applicant

Michael Jones in his capacity as Trustee of the Bankrupt Estates of Mark Andrew Hurdis

First Respondent

Adam Anthony Coombs

Second Respondent

Procedural Posture

Practice and Procedure / Interlocutory Application for Leave to File Amended Statement of Claim

Legal Issues

  1. 1 Whether paragraphs of the proposed amended statement of claim fail to disclose a reasonable cause of action or are likely to cause prejudice, embarrassment or delay
  2. 2 Whether claims for misleading and deceptive conduct, unconscionability, breach of fiduciary duty, and deceit may be advanced by a discharged bankrupt against a trustee
  3. 3 Whether the applicant has standing to seek particular forms of relief, including declarations concerning the trustee's fitness, aggravated or exemplary damages

Ratio Decidendi

Leave is granted to file an amended statement of claim in the proposed form subject to the exclusion or qualification of certain paragraphs that fail to disclose a reasonable cause of action or are likely to cause prejudice, embarrassment, or delay. Claims for misleading and deceptive conduct and unconscionability, to the extent they relate to personal injury or wrong, are arguably maintainable by the discharged bankrupt; however, the applicant lacks standing to seek generalized declarations regarding trustee fitness, and claims for aggravated and exemplary damages are limited or unavailable as a matter of law.

Court Disposition

Interlocutory application granted in part (leave to amend statement of claim subject to exclusions); costs ordered against applicant at 75%.

Orders

  • Leave to file amended statement of claim in specified form subject to express limitations and deletions
  • Applicant to pay 75% of the Trustee's costs incidental to the interim application