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[2020] WASC 5
Supreme Court of WA
2020-01-20
Hill J
Original judgment source is linked above.
The relevant matters to consider when a party seeks to extend the time for filing its notice of appeal include the following:
(a) on the expiry of the time for appealing, the respondent has a vested right to retain the judgment unless the application for an extension of time is granted;
(b) the grant of an extension of time under the rule is not automatic; the object of the rule permitting extensions of time is to ensure that the rules which fix time for the doing of acts do not become instruments of injustice; and the discretion to extend time is given for the sole purpose of enabling the court to do justice between the parties;
(c) nevertheless, the rules of court must, prima facie, be obeyed, and in order to justify a court in extending the time, there must be some material upon which the court can exercise its discretion;
(d) there are, generally, at least four major factors to be considered, although they are not necessarily exhaustive in each case:
(i) the length of the delay;
(ii) the reasons for the delay;
(iii) the prospects of the applicant succeeding in the appeal; and
(iv) the extent of any prejudice to the respondent;
(e) other factors may include whether the delay was intentional, or contumelious, or merely the result of a bona fide mistake or blunder, and whether the delay is that of the litigant or of its lawyers with which the litigant should not be saddled;
(f) the length and reasons for the delay must be addressed by the applicant and the cogency of the explanation increases as the period of the extension sought increases:
(g) in relation to the third matter referred to in subpar (d) above, the time for appealing will not be extended unless the proposed appeal has some prospect of success; the converse of that proposition is not that time must be extended if an appeal has any prospect of success, but rather, the fact that an appeal has some prospect of success is a factor which is to be taken into account, together with all other relevant factors; and
(h) similarly, it is not the law that, whenever an applicant demonstrates an arguable case, or even a strongly arguable case, in the absence of significant prejudice suffered by the respondent, an extension of time should be granted. (citations omitted)
(a) the order of the Acting Principal Registrar was made ex parte and she had no notice of the order until after it was made;
(b) she was informed by the Supreme Court that she was not entitled to file a notice of appeal but was required to file an application pursuant to O 67 r 5 of the RSC for leave to file the notice of appeal;
(c) she filed an application which was heard and determined by Acting Justice Strk on 21 May 2019;
(d) shortly after the delivery of these reasons for decision,[6] she lodged the notice of appeal, the subject of this application.
(a) the first-named applicant filed an ex parte originating motion on 29 March 2019 seeking leave to file a minute of proposed ex parte originating motion. No minute was filed with the application;
(b) on 18 April 2019, a minute was filed which, inter alia, sought orders setting aside the orders of the Acting Principal Registrar in these proceedings;
(c) the ex parte originating motion was dismissed on the basis that, inter alia, it was not 'appropriate for grievances in relation to the four separate, unrelated proceedings ... to be agitated through the vehicle of one fresh proceeding'.[7]
Notwithstanding anything contained in this section, a bankrupt may continue, in his or her own name, an action commenced by him or her before he or she became a bankrupt in respect of:
(a) any personal injury or wrong done to the bankrupt, his or her spouse or de facto partner or a member of his or her family; or
(b) the death of his or her spouse or de facto partner or of a member of his or her family.
The effect, therefore, is that s 60(4) permits a bankrupt to proceed in his or her own name with an action for personal injury or wrong to such persons, and s 116(2)(g) provides that the right to damages in such an action does not vest in the trustee in bankruptcy for the benefit of the creditors. The intent is clear, namely, that the bankrupt's participating creditors should not be entitled to the benefit of compensation paid to a bankrupt for a personal injury or wrong done to any of the specified persons.
The test appears to be whether the damages or part of them are to be estimated by immediate reference to pain felt by the bankrupt in respect of his [or her] mind, body or character and without reference to his [or her] rights of property.
(a) on 20 July 2018, sequestration orders were made against each of the applicants;[17]
(b) on 1 November 2018, the respondent sent a notice to the applicants' trustee in bankruptcy pursuant to s 60(3) of the Bankruptcy Act notifying them of the proceedings and requiring the trustee to elect whether to prosecute or discontinue the proceedings;[18]
(c) no reply was received from the trustee within 28 days.[19]
provide [the applicants] with legal advice and representation with respect to various matters related to the liquidation of Computer Accounting and Tax Pty Ltd (in liquidation).
Claims arising out of the liquidation of Computer and Tax Accounting Pty Ltd (In Liquidation).
WAD 178/2017 (appeal from decision in WAD 607/2015)
[T]he fundamental premise underlying the Friggers' claims in the first five causes of action pleaded in the proposed substituted statement of claim is that the December 2009 Court of Appeal orders for the repayment of the excess monies by CAT and costs, are invalid and unenforceable; and that PSA and Mr Banning's estate, as well as their legal representatives, have, in treating the orders as valid and enforceable, and, in taking consequential legal action against CAT and the Friggers, acted for the collateral purpose of harming the Friggers.
Thus, the Friggers allege in their Corporations Act claim that the December 2009 Court of Appeal orders are invalid and unenforceable because they were obtained as a consequence of contraventions of the Corporations Act; and that, accordingly, they are entitled to obtain a permanent injunction pursuant to s 1324(1) of the Corporations Act restraining PSA and Mr Banning's estate from enforcing those orders; and also damages under s 1324(10) for the economic and reputational loss they have suffered as a consequence of the respondents treating the orders as valid and enforceable and 'dragging' the Friggers into a plethora of litigation.
As mentioned, it is this Corporations Act claim, which the Friggers say gives this Court jurisdiction to hear and determine that claim, as well as the common law claims founded on collateral abuse of process, and tortious interference with contract.
In my view, the claims of the appellant on the appeal, and in the primary application to set aside the bankruptcy notice, do not fall within the scope of s 60(4). If the appeal were successful, there would be no damages awarded to the appellant and certainly no damages assessed by immediate reference to pain or injury experienced by him. There would be no direct benefit to him in the sense of a valuable personal asset (his example was a driver's licence) being restored. An illustration of such a case is provided by Griffiths v Civil Aviation Authority, which recognised that a commercial pilot's licence (the appeal to this court was from a decision by the Administrative Appeals Tribunal imposing stringent conditions on the licence) is property of a bankrupt personal in nature and not part of the estate available to the creditors. See in particular per Spender J at 311-318.
In my view, s 60(4) is not intended to preserve to a bankrupt a claim to set aside a bankruptcy notice, as it is intended to preserve only the prosecution and benefits of litigation if there are potential benefits to the bankrupt which are not legitimately entitlements of the bankrupt's creditors. The application to set aside the bankruptcy notice will not directly result in any award of damages to the appellant. ... (citations omitted)
Conclusion in relation to the respondent's retainer
Ordinarily, if an appeal is discontinued, costs follow the event. If an appeal were to be abandoned in normal circumstances by express statement of the appellant, it would be open to a respondent to put an end to it by moving the Court to have the appeal dismissed for want of prosecution. In those circumstances, costs would still follow the event and an order would be made against the appellant in respect of those costs. Such costs would, of course, include the costs of moving the Court to dismiss the appeal for want of prosecution.
I am not aware of any authority on the effect of s 60 of the Bankruptcy Act on the matter of costs when either there is an election to discontinue a proceeding or there is a deemed abandonment of it. In my view, the Court should follow the normal practice and costs should follow the event.
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] Rules of the Supreme Court, O 60A, r 5.
[2] Rules of the Supreme Court, O 60A, r 6.
[3] CVW Group Holdings Pty Ltd v Addison [2011] WASC 267 [17]; see also Priority Networking Pty Ltd v Peterson [2018] WASC 36 [28].
[4] Simonsen v Legge [2010] WASCA 238.
[6] Re Rules of the Supreme Court 1971 (WA); Ex Parte Frigger [2019] WASC 175.
[7] Re Rules of the Supreme Court 1971 (WA); Ex Parte Frigger [53].
[9] Fletcher v Westpac [2012] WASCA 154 [14].
[10] Cox v Journeaux [No 2] [1935] HCA 48; (1935) 52 CLR 713, 721.
[11] Moss v Eaglestone [2011] NSWCA 404; (2011) 83 NSWLR 476 [77].
[13] Sheehan v Brett-Young [No 3] [2016] VSC 39 [69].
[14] Fletcher v Westpac [22] (per Newnes JA, Pullin and Murphy JJA agreeing).
[15] Moss v Eaglestone [32] - [67].
[16] Frigger v Banning [No 8] [2019] FCA 1319 [64].
[17] Affidavit of Makan Mirzai filed 30 January 2019 [3], 'MM1'.
[18] Affidavit of Makan Mirzai filed 30 January 2019 [4], 'MM2'.
[19] Affidavit of Makan Mirzai filed 30 January 2019 [5].
[20] Affidavit of Mark Alexander Kenneth Richards filed 31 July 2019, 'MAR4', p 10.
[21] Affidavit of Mark Alexander Kenneth Richards filed 31 July 2019, 'MAR4', p 30.
[22] Affidavit of Angela Frigger filed 13 August 2018, 'AF1'.
[23] Affidavit of Angela Frigger filed 13 August 2018, 'AF1', p 18 [16].
[24] Affidavit of Angela Frigger filed 13 August 2018, 'AF1', p 18 [16(a)(i)].
[25] Affidavit of Angela Frigger filed 13 August 2018, 'AF2'.
[26] Affidavit of Angela Frigger filed 13 August 2018 [15].
[27] Affidavit of Angela Frigger filed 13 August 2018, 'AF3'.
[28] Affidavit of Angela Frigger filed 28 June 2019, 'AF1'.
[29] Affidavit of Angela Frigger filed 28 June 2019 [5].
[30] Frigger v Banning [2017] FCA 1589.
[31] Frigger v Banning [115] - [117].
[32] Affidavit of Angela Frigger sworn 13 August 2018 [14].
[33] Affidavit of Angela Frigger sworn 13 August 2018 [14], 'AF2'.
[34] Affidavit of Angela Frigger sworn 13 August 2018, 'AF1', p 5.
[35] Frigger v Kitay [No 2] [2017] WASCA 139 [3].
[36] Affidavit of Angela Frigger sworn 13 August 2018 [16].
[37] Rana v Chief of Army [2008] FCA 1554 [25] - [26].
[38] National Australia Bank Ltd v Nyasa Nominees Pty Ltd [2019] WASC 107 [12].
[39] Cole v Challenge Bank Ltd [2002] FCAFC 200 [16].
[41] Cole v Challenge Bank Ltd [16] - [17].
(1935) 52 CLR 713
(2011) 83 NSWLR 476