[2025] FCA 640
General information, not legal advice.
Federal Court of Australia
2025-06-06
Colvin J
Original judgment source is linked above.
Australian Competition and Consumer Commission v Colgate-Palmolive Pty Ltd (No 5) [2021] FCA 246
Babscay Ptd Ltd v Pitcher Partners [2020] FCA 1610
Foots v Southern Cross Mine Management Pty Ltd [2007] HCA 56; (2007) 234 CLR 52
Frigger v Professional Services of Australia Pty Ltd (No 6) [2024] FCA 1320
Frigger v Trenfield (No 10) [2021] FCA 1500
Frigger v Trenfield (No 11) [2022] FCA 326
Frigger v Trenfield (No 3) [2023] FCAFC 49
Frigger v Trenfield [2023] HCASL 110
Frigger v Trenfield (Application to Amend) [2024] FCA 508
Frigger v Trenfield (Application to Adjourn Final Hearing) [2025] FCA 71
Frigger v Trenfield (Application to Adjourn Final Hearing) (No 2) [2025] FCA 580
Greaves v CGU Insurance Ltd [2004] NSWSC 912
Melbourne City Investments Pty Ltd v Treasury Wine Estates Limited (No 2) [2017] FCAFC 116
Re Minister for Immigration and Ethnic Affairs; Ex parte Lai Qin [1997] HCA 6; (1997) 186 CLR 622
Royal Caribbean Cruises Ltd v Reed (No 4) [2021] FCA 614
SCI Operations Pty Ltd v Trade Practices Commission [1984] FCA 52; (1984) 2 FCR 113
Thirteenth Corp Pty Ltd v State [2006] FCA 979
Thunder Studios Inc (California) v Kazal (No 11) [2020] FCA 1656
Trade Practices Commission v Manfal Pty Ltd (No 3) [1991] FCA 650; (1991) 33 FCR 382
Tydeman v Asgard Group Pty Ltd, in the matter of Asgard Group Pty Ltd [2023] FCA 486
Wickham v Bells Securities Pty Ltd [2006] QSC 167
Wotton v State of Queensland [2009] FCA 758
Zetta Jet Pte Ltd v The Ship 'Dragon Pearl' (No 2) [2018] FCAFC 132; (2018) 265 FCR 290
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.











Generally, the respondent's position is that these proceedings should be limited to the question as to whether the respondent's appointment as trustee should be rescinded and the relevant consequences (as set out in the originating application) if that order is found to be appropriate, by reason of matters relating to the respondent's compliance with the relevant requirements for her continuing registration as a trustee. That would include matters such as the respondent's employment status, independence, insurance etc.
Further additional amendments that will require further substantial evidence should be refused. The parties have already given their substantive evidence in these proceedings.
The proceedings should not be the vehicle for a wide ranging enquiry into the respondent's conduct in relation to the estates. That is beyond the scope of the originating application. The respondent's conduct vis-à-vis the estate does not lead to the primary relief sought by the applicants - namely the recission of her appointment.
(1) 'It is not suggested by Mrs and Mr Frigger that the claims that they now seek to add could not be the subject of separate proceedings if properly pleaded' (at [21]);
(2) the proposed new claims 'focus to a considerable degree upon what has occurred in relation to the Portfolio' (at [21]);
(3) 'Usually, where fairness to other parties can be maintained, the Court will allow amendments to ensure that all of the substantive controversy between the parties is raised in a single proceeding. However, the Court is also concerned to avoid the prejudice that can arise from applications to amend and to facilitate the just resolution of disputes according to law and as quickly, inexpensively and efficiently as possible' (at [26]);
(4) 'What is now proposed by Mrs and Mr Frigger is the addition of claims that concern the way in which the estates have been administered, particularly in relation to the Portfolio. If that course is allowed, it will open up a substantial new controversy that is likely to delay significantly the adjudication of the existing issues in the proceedings which issues concern whether, having regard to her remuneration and employment arrangements with FTI, Ms Trenfield should be allowed to continue the administration' (at [29]);
(5) 'the over-arching purpose of resolving disputes quickly, inexpensively and efficiently may mean that doing justice as between the parties requires the present proceedings to be confined to their existing scope' (at [30]);
(6) 'the controversy that has given rise to the current proceedings concerns whether the arrangements between Ms Trenfield and FTI (and the communications with the Inspector General concerning those arrangements when renewing her registration) are reasons why she should be removed as trustee. It will be a means by which that separate issue, which has significance for the ongoing administration of the estates, is resolved promptly' (at [30]); and
(7) 'it may be preferable to require the matters that Mrs and Mr Frigger seek to raise by way of amendment to be the subject of separate proceedings. Such a course may be more efficient than treating the present application which has reached a stage where it is ready for hearing to be substantially delayed to allow Mrs and Mr Frigger to treat it as a form of omnibus proceeding in which they can raise a shopping list of complaints that are only connected to the present proceedings in the sense that they are also directed against Ms Trenfield and concern their bankruptcy' (at [30]).
A proposed further re-amended statement of claim was provided to the Court. It proposed the joinder of FTI as a party to the proceedings and sought to make the following additions to the statement of claim:
(1) Particulars of an existing allegation (para 12) to the effect that Ms Trenfield and FTI executed an employment agreement when FTI purchased Korda Mentha Qld. The particulars refer to particular aspects of the employment agreement.
(2) A new plea (as para 12A) to the effect that FTI 'fraudulently took over control from the official trustee of the Applicants' estates'. The plea is said to be based upon earlier pleas to the effect that Ms Trenfield provided a declaration of independence to the creditors of the estate 'that contained false statements' and the particulars to be added concerning aspects of the employment agreement.
(3) Detailed particulars to proposed new para 12A listing various things allegedly done in the course of the administration, particularly matters in relation to the administration of the share portfolio.
(4) A plea based upon para 12A to the effect that Ms Trenfield and FTI 'deliberately and fraudulently delayed and/or prevented the resolution and termination of the Applicants' bankruptcy'.
(5) A plea (para 28A) that in its report to creditors FTI admitted it is a related entity of [Ms] Trenfield.
(6) An expansion of the relief to include FTI.
The issue is whether the contentions now advanced might support a claim of fraud in the terms now proposed to be added by way of further amendment as a basis for recovery of monies allegedly received by FTI. As I explain below, in my view the materials to which Mrs and Mr Frigger propose to refer to support the claims of fraud which they wish to allege against FTI are an insufficient foundation for these claims.
The following reasons deal sequentially with each of the proposed amendments as listed above at [18] of these reasons:
(1) The amendment to introduce the particulars is not necessary. The applicants are entitled to refer to particular provisions in the employment agreement in support of their case. To the extent that the amendments are proposed in order to support a proposed new plea of fraud, I deal with those matters below.
(2) The proposed pleading is insufficient to provide a basis for a claim of fraud. Material facts must be pleaded to support a serious allegation of that kind. They must expose a basis upon which a conclusion of fraud may be reached. Further, as Mrs and Mr Frigger act in person the Court must be satisfied that there is some evidentiary basis for the claims made (in circumstances where the Court cannot act on the basis that the duties of counsel are being discharged). The particulars and other matters raised are an insufficient basis for an allegation of fraud. The material to which reference was made in submissions was an insufficient foundation for a case to the effect that FTI has taken over the administration of the bankrupt estates (that is, completely usurped any involvement by Ms Trenfield in the administration) and is purporting to undertake work for Mrs and Mr Frigger as its own clients.
(3) The proposed addition of claims in relation to the administration of the share portfolio was rejected by detailed reasons given in Frigger v Trenfield (Application to Amend) and no reason has been demonstrated as to why the proceedings should be expanded to include some form of complaint about the way the share portfolio has been administered as part of proceedings which concern whether the circumstances of Ms Trenfield's employment by FTI (or the matters advanced in support of her registration) provide a basis for her removal as trustee.
(4) The proposed pleading is insufficient to provide a basis for a claim of fraud which requires material facts to be pleaded to support a serious allegation of that kind.
(5) The matter the subject of proposed new plea 28A is a matter for evidence.
(6) As has been explained, these proceedings have been conducted on the basis that the relief sought concerns Ms Trenfield and not FTI. Until now, a case against FTI has been expressly disavowed. The controversy in the proceedings is whether Ms Trenfield should be allowed to continue as trustee and whether the estate of Mrs and Mr Frigger should have to bear certain costs, fees and charges. FTI is not a necessary party to proceedings in which relief of the kind presently alleged is sought because that relief is directed to Ms Trenfield's conduct as trustee. The relief sought in the current proceeding extends to the reimbursement of any charges to the estates for work done by Ms Trenfield as well as other employees of FTI. There is also a claim that Ms Trenfield make good any losses to the estates. Ms Trenfield does not seek to involve FTI in the proceedings when it comes to the consequences of relief of that kind were it to be upheld. That is to say, Ms Trenfield does not seek, in the present proceedings, some form of indemnity or to make some other form of claim against FTI that would be contingent upon success by Mrs and Mr Frigger.
... until this point, Mrs and Mr Frigger have disavowed any claim against FTI consequent upon allegations to the effect that FTI have controlled the actions of Ms Trenfield and the administration has been conducted for the benefit of FTI. The proceedings have reached the stage where they are ready for final hearing on the basis that the only relief sought based upon FTI's alleged control of Ms Trenfield is the relief sought against Ms Trenfield.
... As I have noted, the case as presently pleaded has been advanced on the basis that relief is not sought against FTI. Further, as I have explained, the existing application has been on foot for almost two years and seeks to call into question the authority of Ms Trenfield to administer the bankrupt estates. Understandably, since the early stages of these proceedings, Ms Trenfield has been pressing for the prompt resolution of those claims which are framed in terms that seek to challenge the validity of her administration of the bankrupt estates. The evidence on the application was filed a considerable time ago.
Therefore, even if the application for leave to appeal succeeded, it would result in the introduction of a new case of a kind that concerns distinct issues. At best, the prejudice to Mrs and Mr Frigger will be the fact that they would be unable to include these further claims into the existing proceedings rather than pursuing them separately, assuming, of course, that there was a proper basis demonstrated to bring the proposed claims of fraud and the claims about administration of the bankruptcy insofar as it concerns the share portfolio.
Please have regard to the attached notice of discontinuance and advise whether Trenfield consents to discontinuance. If we do not hear from you by 9 am 28 May 2025 AWST, we will file an application.
(a) [Mrs and Mr Frigger] not commence any further proceedings in any court against [Ms Trenfield] based on the allegations made in these proceedings or asserting the same causes of action; and
(b) [Ms Trenfield] be entitled to her costs of the proceedings, on an indemnity basis, to be assessed by a Registrar on a lump sum basis, which costs [Ms Trenfield] is entitled to pay from the assets of the bankrupts' estates, forthwith.
The reasons advanced by Mrs and Mr Frigger for seeking to discontinue
In the present matter, the Applicants do not seek to discontinue pursuant to any settlement agreement, nor is there any deed of release. The purpose of the discontinuance is to enable the Applicants to recommence proceedings with better-formulated claims and a revised evidentiary basis, in circumstances where an interlocutory application to do so was dismissed.
Similarly, the Applicants respectfully submit that the Court should make a declaration that the discontinuance does not affect any rights to bring fresh proceedings, to avoid the risk of any issue estoppel or procedural bar being argued by the Respondent in future.
(emphasis added)
Contentions advanced by Mrs and Mr Frigger in support of the application
(1) discontinuance with a view to repleading a claim was said to be an ordinary forensic step relying on Babscay Ptd Ltd v Pitcher Partners [2020] FCA 1610;
(2) it was not the function of the Court to engage in a retrospective hypothetical trial to allocate costs where no determination on the merits had occurred;
(3) it is not appropriate to impose indemnity costs or 'litigation restraint orders' absent misconduct relying upon the decision in Foots v Southern Cross Mine Management Pty Ltd [2007] HCA 56; (2007) 234 CLR 52 for the proposition that such orders are 'exceptional and not presumed';
(4) no injustice would arise from the discontinuance;
(5) there was no prejudice to Ms Trenfield because, as an employee of FTI, she bears no personal liability for legal costs which were said to be payable by FTI without any right of recovery from Ms Trenfield, relying upon the terms of an employment agreement (cl 28);
(6) there would be no forensic disadvantage to Ms Trenfield if there was leave to discontinue on the terms proposed by Mrs and Mr Frigger because the work done on evidence and submissions would be relevant in the proposed new proceedings to be brought by them;
(7) the submission by Ms Trenfield that the proceedings distract from the administration of the estates should not be accepted because there is nothing in the proceedings that stops the administration from continuing;
(8) the proposed declaration to the effect that no issue estoppel would arise from the discontinuance was 'appropriate and necessary' and was said to be supported by the decision in Wotton v State of Queensland [2009] FCA 758;
(9) the application for leave to discontinue was 'a principled attempt to withdraw, regroup and proceed afresh'; and
(10) the authorities relied upon by Ms Trenfield did not apply to the present circumstances.
(1) Ms Trenfield had been pressing for some time for the issues raised by the proceedings (which challenged her authority to act as trustee) to be resolved;
(2) there would be prejudice in denying to Ms Trenfield the imminent timely resolution of what was said to be longstanding allegations which are 'continuing to distract from the administration of the estates';
(3) whatever forensic advantage might have been obtained by reason of the way the case had been conducted and the issues limited would be lost;
(4) the commencement of fresh proceedings would increase costs; and
(5) the course proposed by Mrs and Mr Frigger would distract from the administration of the estates and require FTI to continue to carry external expenses incurred by Ms Trenfield in these proceedings and any fresh proceedings.
(1) What were the principles to be applied when considering the appropriate conditions to be imposed when granting leave to discontinue?
(2) Would the course proposed by Mrs and Mr Frigger be an abuse of process?
(3) Was it appropriate for the final hearing to proceed?
(4) If leave was to be given to discontinue, having regard to the answers to (1) and (2), what conditions should apply to the leave?
(5) What orders should be made as to costs?
Issue (1): The principles to be applied when considering the appropriate conditions to be imposed when granting leave to discontinue
(1) The discretion whether to grant leave is wide and unfettered.
(2) It is generally undesirable to compel a party to pursue litigation it no longer wishes to pursue.
(3) However, consideration should be given to all relevant circumstances.
(4) Those circumstances include whether discontinuance against one respondent may impose injustice on another respondent by removing an advantage that respondent may otherwise enjoy in the proceedings.
(5) It is relevant to have regard to whether the discontinuance would make any difference to the burden of litigation undertaken by the applicant and whether the application to discontinue results from a conclusion that the litigation cannot succeed or is inspired by other reasons.
... The court will give consideration to the need to refrain from compelling a party to litigate against its will but will also consider the extent to which the proceedings have developed and whether discontinuance against one respondent may impose injustice on another respondent by removing an advantage that respondent may otherwise enjoy in the proceedings or by imposing a disadvantage. In considering the undesirability of an applicant being forced to continue litigation unwillingly, it is relevant to have regard to whether the discontinuance would make any difference to the burden of litigation undertaken by the applicant and whether the application to discontinue results from a conclusion that the litigation cannot succeed against that respondent or is inspired by other reasons.
The requirement of the Federal Court Rules that, in the absence of consent of all parties, discontinuance of litigation against a party only be permitted by leave of the court contemplates a judicial review of all relevant circumstances and the satisfaction of the court that the grant of leave is proper in all the circumstances. In some cases the court may determine that a grant of leave to discontinue should be attended with conditions and in a rare case the court may determine that the only appropriate order is to refuse the leave sought.
(1) 'a plaintiff should not be compelled to litigate against its will and that the court should therefore grant leave to discontinue, if it can, without injustice to the defendant' (at [9]);
(2) 'a court should lean towards giving leave to do so unless that would cause "manifest injustice" to the opponent' quoting Sheppard J in SCI Operations Pty Ltd v Trade Practices Commission [1984] FCA 52; (1984) 2 FCR 113 at 182 (at [9]);
(3) 'the respondents are already facing [a case concerning the same subject matter] in Florida, so there in little uncertainty in that regard such that there would be no basis for me to make the leave subject to a condition that the applicants not be able to bring that case anywhere' (at [11]); and
(4) 'The applicants were content to commit to not bringing [that case] in Australia, and for that reason I was prepared to impose a condition to that effect' (at [11]).
Issue (4): Conditions applying to the leave to discontinue
(1) discontinuance without the imposition of the condition would facilitate an abuse of process by Mrs and Mr Frigger;
(2) the final hearing was imminent;
(3) as has been explained, there was obvious prejudice to Ms Trenfield if the proceedings and the opportunity for an imminent final determination of the claim that Ms Trenfield's arrangements with her employer FTI meant that her appointment should be rescinded ab initio was lost; and
(4) Mrs and Mr Frigger's ability to bring proceedings based upon other allegations was not affected by the conditions (noting that the interlocutory decisions refusing leave to add further claims had been made, in part, for case management reasons and on the express basis that other claims may be brought separately).
I certify that the preceding seventy-nine (79) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Colvin.
Frigger
Trenfield
(1997) 186 CLR 622
(1984) 2 FCR 113
(2018) 265 FCR 290
(2007) 234 CLR 52
(1991) 33 FCR 382