Michael Wilson & Partners Limited v Cronan [2023] NSWSC 1050

Michael Wilson & Partners Limited v Cronan [2023] NSWSC 1050

The proceedings necessarily raise issues requiring the exercise of the Federal Court's jurisdiction 'in bankruptcy', as the claims and defences depend on the statutory duties and regime under the Bankruptcy Act. Therefore, under cross-vesting legislation, the matter is a 'special federal matter' and must be transferred.

Parties
Plaintiff: Michael Wilson & Partners Limited; First Defendant: Jason Cronan; Second Defendant: Terrence Van der Velde; Third Defendant: Jason Porter; Fourth Defendant: Richard Moretti
Jurisdiction
Australia
Judgment Date
01 September 2023
Procedural Posture
Civil / Application for Transfer Under Cross Vesting Legislation; Interlocutory Ruling
Outcome
Proceedings transferred to the Federal Court of Australia; costs in the cause
Legal Topics
Cross Vesting, Jurisdiction, Trustees in Bankruptcy, Transfer of Proceedings, Federal Jurisdiction
Civil Procedure Bankruptcy Cross Vesting Jurisdiction Trustees in Bankruptcy Transfer of Proceedings Federal Jurisdiction

Case Brief

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Parties

Michael Wilson & Partners Limited

Plaintiff

Jason Cronan

First Defendant

Terrence Van der Velde

Second Defendant

Jason Porter

Third Defendant

Richard Moretti

Fourth Defendant

Procedural Posture

Civil / Application for Transfer Under Cross Vesting Legislation; Interlocutory Ruling

Legal Issues

  1. 1 Whether the proceedings concern a 'special federal matter' under the Bankruptcy Act requiring transfer to Federal Court
  2. 2 Whether the Supreme Court of NSW has jurisdiction to hear the claims
  3. 3 Whether the discretionary factors favour transfer of proceedings

Ratio Decidendi

The proceedings necessarily raise issues requiring the exercise of the Federal Court's jurisdiction 'in bankruptcy', as the claims and defences depend on the statutory duties and regime under the Bankruptcy Act. Therefore, under cross-vesting legislation, the matter is a 'special federal matter' and must be transferred.

Court Disposition

Proceedings transferred to the Federal Court of Australia; costs in the cause

Orders

  • Pursuant to subs 5(1) of the Jurisdiction of Courts (Cross-vesting) Act 1987 (NSW) and rule 44.3 of the Uniform Civil Procedure Rules 2005 (NSW), these proceedings be transferred to the Federal Court of Australia.
  • The costs of the proceedings to date and of this application are costs in the cause.