Reliance Financial Services Pty Ltd v Leroy (Trustee) [2016] FCA 1380

Reliance Financial Services Pty Ltd v Leroy (Trustee) [2016] FCA 1380

Reliance failed to prove, on balance of probabilities, any specific debt or enforcement costs beyond an initial principal sum and limited fees were owed and secured by the charge, as neither its internal records nor purported invoices were reliable or sufficiently supported. Only the initial principal of $10,000 and $1,500 in fees, less subsequent payments, were established as secured.

Jurisdiction
Australia
Judgment Date
08 December 2016
Procedural Posture
Commercial and Corporations General and Personal Insolvency / Judgment After Hearing on Origin of Charge Over Property/proceeds in Bankruptcy Proceeding
Outcome
Declaration of charge limited to initial principal and fees less payments; parties directed to file proposed orders regarding leave under s 58(3) of Bankruptcy Act and costs timetable.
Legal Topics
['declaration of Charge Over Proceeds of Sale' 'burden of Proof for Amount Secured by Charge' 'costs of Enforcement Under Security']
['bankruptcy and Insolvency' 'commercial Law'] ['declaration of Charge Over Proceeds of Sale' 'burden of Proof for Amount Secured by Charge' 'costs of Enforcement Under Security']

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Procedural Posture

Commercial and Corporations General and Personal Insolvency / Judgment After Hearing on Origin of Charge Over Property/proceeds in Bankruptcy Proceeding

Legal Issues

  1. 1 ['Whether the charge over the land secured any specific amount of money owed to Reliance Financial Services Pty Ltd at the time of sale' 'Whether Reliance proved the existence and quantum of any enforceable debt secured by the charge' 'Whether enforcement costs claimed were secured by the charge']

Ratio Decidendi

Reliance failed to prove, on balance of probabilities, any specific debt or enforcement costs beyond an initial principal sum and limited fees were owed and secured by the charge, as neither its internal records nor purported invoices were reliable or sufficiently supported. Only the initial principal of $10,000 and $1,500 in fees, less subsequent payments, were established as secured.

Court Disposition

Declaration of charge limited to initial principal and fees less payments; parties directed to file proposed orders regarding leave under s 58(3) of Bankruptcy Act and costs timetable.

Orders

  • ['Parties to file agreed or competing proposed orders within 14 days in accordance with reasons, including grant of leave under s 58(3) Bankruptcy Act and timetable for costs determination.']