Nelson v Thompson [2021] FCA 1055

Nelson v Thompson [2021] FCA 1055

Given the respondent’s non-opposition, the complexities surrounding what constitutes a provable debt in cases alleging professional negligence, and the advanced state and circumstances of the existing proceedings, leave under s 58(3) of the Bankruptcy Act 1966 (Cth) should be granted to the applicant to continue and take fresh steps in the Supreme Court of Western Australia proceeding against Mr Thompson, subject to specified conditions.

Jurisdiction
Australia
Judgment Date
01 September 2021
Procedural Posture
Application for Leave Regarding Steps in Proceedings Involving a Bankrupt Respondent / Determination of Application for Leave Under S 58(3) Bankruptcy Act 1966 (cth)
Outcome
Application allowed; leave to continue proceedings granted, subject to conditions.
Legal Topics
['leave to Proceed Against Bankrupt' 'provable Debt' 'professional Negligence' 'breach of Contract by Solicitor']
['bankruptcy and Insolvency'] ['leave to Proceed Against Bankrupt' 'provable Debt' 'professional Negligence' 'breach of Contract by Solicitor']

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Procedural Posture

Application for Leave Regarding Steps in Proceedings Involving a Bankrupt Respondent / Determination of Application for Leave Under S 58(3) Bankruptcy Act 1966 (cth)

Legal Issues

  1. 1 ['Whether leave should be granted under s 58(3) of the Bankruptcy Act 1966 (Cth) to continue and take fresh steps in proceedings against a bankrupt solicitor' "Whether the applicant's claims are in respect of 'provable debts' under the Bankruptcy Act 1966 (Cth)"]

Ratio Decidendi

Given the respondent’s non-opposition, the complexities surrounding what constitutes a provable debt in cases alleging professional negligence, and the advanced state and circumstances of the existing proceedings, leave under s 58(3) of the Bankruptcy Act 1966 (Cth) should be granted to the applicant to continue and take fresh steps in the Supreme Court of Western Australia proceeding against Mr Thompson, subject to specified conditions.

Court Disposition

Application allowed; leave to continue proceedings granted, subject to conditions.

Orders

  • ['The applicant is granted leave (to the extent necessary) to continue and take fresh steps in Supreme Court proceedings CIV 2404 of 2015 against Jarrod Thompson.' "The leave is conditional upon the applicant providing a written undertaking within 14 days: (a) not to seek final relief without giving seven days'...