Sutherland (in the Matter of Scutts) [1999] FCA 258

Sutherland (in the Matter of Scutts) [1999] FCA 258

The trustee is justified in distributing the divisible property among creditors pari passu, and costs for the trustee and each group of represented creditors are properly payable out of the estate on a solicitor and client basis, subject to reasonableness, with only one set of costs for creditors sharing a common interest unless compelling justification for separate costs is shown.

Parties
Applicant: Roderick Mackay Sutherland; Bankrupt: Walter Henry Scutts; Creditors: Category A Creditors; Creditors: Category B Creditors; Counsel for Category B Creditors: Mr C Stomo; Category B Creditor: Mr Ardill-Guinness; Creditors: Category C Creditors; Creditors: Category D Creditors; Counsel for Category D Creditors: Mr L Aitken; Solicitor for Category D Creditors: Mr J Chippindall; Solicitor for Category D Creditors: Peter Wayne
Jurisdiction
Australia
Judgment Date
11 March 1999
Procedural Posture
Bankruptcy Application / Post Judgment Directions, Costs Determination
Outcome
Orders made for the distribution of the bankrupt's estate and for the payment of costs out of the estate as specified.
Legal Topics
Distribution of Estate, Trustee Powers, Costs in Bankruptcy, Creditor Priorities
Bankruptcy Distribution of Estate Trustee Powers Costs in Bankruptcy Creditor Priorities

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 6 Party arguments 2
Sign in to unlock

Parties

Roderick Mackay Sutherland

Applicant

Walter Henry Scutts

Bankrupt

Category A Creditors

Creditors

Category B Creditors

Creditors

Mr C Stomo

Counsel for Category B Creditors

Mr Ardill-Guinness

Category B Creditor

Category C Creditors

Creditors

Category D Creditors

Creditors

Mr L Aitken

Counsel for Category D Creditors

Mr J Chippindall

Solicitor for Category D Creditors

Peter Wayne

Solicitor for Category D Creditors

Procedural Posture

Bankruptcy Application / Post Judgment Directions, Costs Determination

Legal Issues

  1. 1 Whether the trustee is justified in distributing the property of the bankrupt among the creditors pari passu subject to s 109 of the Bankruptcy Act 1966 (Cth)
  2. 2 How costs relating to the representation of creditors should be dealt with in the matter

Ratio Decidendi

The trustee is justified in distributing the divisible property among creditors pari passu, and costs for the trustee and each group of represented creditors are properly payable out of the estate on a solicitor and client basis, subject to reasonableness, with only one set of costs for creditors sharing a common interest unless compelling justification for separate costs is shown.

Court Disposition

Orders made for the distribution of the bankrupt's estate and for the payment of costs out of the estate as specified.

Orders

  • The Trustee is justified, subject to s 109 of the Bankruptcy Act 1966 (Cth), in distributing the property divisible among the bankrupt’s creditors (including the specified funds and platinum) pari passu.
  • Costs of the Trustee to be paid out of the estate of the bankrupt on a solicitor and client basis, except for unreasonably or improperly incurred costs.