[2025] FCA 979
General information, not legal advice.
Federal Court of Australia
2025-08-20
Charlesworth J
Original judgment source is linked above.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
REASONS FOR THE ORDERS SUBJECT TO LEAVE TO APPEAL
(1) The annulment application is based predominantly on the fact that the debtor's petition should not have been presented and received by the receiver because Ms Kimber was solvent and she was induced into making a debtor's petition assisted by Mr Clark. As to her solvency, Ms Kimber relied upon BSF Partners' report as to her solvency in March 2019 and submitted that there was no change in her circumstances between March 2019 and August 2019 when she presented the debtor's petition.
(2) Summary dismissal should be reserved for the clearest of cases, which this case was not. There are many significant unresolved complex factual and legal issues requiring a full hearing and there is a lack of evidence in support of the summary dismissal application. In addition to disputing facts in relation to her solvency, Ms Kimber denies the validity of the creditors' claims and contends that a full hearing is necessary in order to explain why they are not valid. She contends that it is the Court's role to investigate the legitimacy of the underlying debt especially where, as here, serious allegations of collusion, fraud and the like have been made.
(3) There are also allegations against the trustee in relation to their administration of the estate, including that they have broken promises to look into the legitimacy of the debts, causing her extreme distress, and there has been trustee misconduct even in relation to 'the formal documents'. In Ms Kimber's submission, these allegations need to be looked into further. Further, she contends that a statement of claim had been filed on her behalf which had been completed under duress with the assistance of the trustee despite his fiduciary duty to protect her property.
(4) The costs agreement between The Owners - Strata Plan No 48216 (Strata Owners) and Grace Lawyers was invalid and Ms Kimber did not have the opportunity to participate in the conciliation between Grace Lawyers and the lawyers for the trustees about costs.
(5) There has been '[c]umulative prejudice ... [with] judgment upon judgment upon judgment, getting misinformation' and a failure to disclose or investigate critical evidence. Ms Kimber has also suffered from procedural barriers with many disadvantages in procedural terms leading to difficulties in presenting evidence and responding to proceedings.
(6) With respect to the judgment debt in favour of the Strata Owners, Ms Kimber alleges as follows:
(a) The 'most vital thing that ... needs to take place' is for the Court to go behind the Local Court judgment which is 'foundational' and is 'what everything else rests on'. As Markovic J dismissed the application to do so, the evidence has not been heard, no subpoenas have been issued and no witnesses have been called.
(b) There is a public interest in going behind the judgment, as the recent Four Corners investigation into strata corporations illustrates.
(c) There is a class of persons benefiting from intentionally pursuing a debt that is false, and the debt was based upon misrepresentations as to facts and omissions of fact.
(7) To dismiss the matter summarily would breach procedural fairness. This is because Ms Kimber is unrepresented and part of her disability is that stress induces confusion which makes it difficult for her to present her case. Ms Kimber said that she needs a good amount of time to be organised and not focus on other things, and to have the opportunity to go through the evidence more fully by going through the affidavits and exhibits 'one by one'.
(8) The cumulative impact of these matters underscores the need for a comprehensive hearing.
(1) Ms Kimber had not put forward evidence demonstrating that she was solvent at the time that the debtor's petition was presented (Kimber (No 3) at [39(2)]);
(2) a creditor's petition on foot at the time that the debtor's petition was presented would have been likely to succeed (Kimber (No 3) at [39(2)]);
(3) Ms Kimber had sought an annulment without making any proposal to benefit her creditors or to address the Trustees' remuneration and costs, in circumstances where the debts of the estate and the remuneration totalled more than $1 million (Kimber (No 3) at [39(1)]);
(4) Ms Kimber's submission that the Court could and should go behind certain judgments of the NSW Local Court (upon which an earlier creditor's petition was based) could not succeed, including for reasons given by Markovic J in Kimber v The Owners Strata Plan No 48216 (No 2) [2018] FCA 406 when dismissing an application to set aside a bankruptcy notice on which that creditor's petition was founded (Kimber (No 3) at [39(3)]);
(5) to leave the creditors unpaid and the Trustees unremunerated would be contrary to the objects of the bankruptcy regime (Kimber (No 3) at [39(4)]);
(6) the administration of the bankruptcy had been lengthy and complex in part because of the actions of Ms Kimber in making a large number of applications relating to it, such that it would be unfair to annul the bankruptcy and deprive the Trustees of remuneration;
(7) Ms Kimber's delay in bringing the annulment application was a significant factor, especially given that the bankruptcy had been brought about on her own petition and the particular debts of which she complained were many years old (Kimber (No 3) at [39(6)]); and
(8) annulment would not result in any revesting of the Property in Ms Kimber as it had already been sold (Kimber (No 3) at [39(7)]).
...
The applicant pay the respondents' costs of and incidental to the application for the stay of the execution of a writ of possession and the stay of a notice to vacate, including the hearings on 16 March 2023, 29 March 2023 and 31 March 2023.
The costs ordered to be paid by the applicant in order 2 above be assessed on a lump sum basis by a registrar of the Court, for which the registrar is authorised to make such orders and arrangements as she or he sees fit.
...
Upon the sale of the land known and described as Lot 110 in Strata Plan SP48216, Unit 110, 450 Pacific Highway, Lane Cove North (the property), the applicant pay from her share of the net proceeds of sale of the property and the respondent is authorised to deduct the following from the applicant's share on settlement:
(a) the respondent's costs as assessed by a registrar in accordance with order 3 above;
(b) any amounts added to the secured debt to the National Australia Bank Ltd between 1 December 2023 and the settlement date of the property;
(c) the amount of any contributions that are due to the Owners Corporation SP48216 between 1 December 2022 and the settlement date of the property that are not paid.
In the event there are insufficient proceeds from the applicant's share of the proceeds of sale to pay the respondents' costs referred to in order 6(a) [sic], then the respondents shall be authorised to pay such part of their costs from the fund available and pursue the applicant for the balance as they deem fit.
...
(1) Ms Kimber's submissions were to the effect that she had a viable case for the annulment of her bankruptcy and in that event the Property should vest in her under s 154(3) of the Bankruptcy Act;
(2) to be granted a stay of the writ of possession and the sale of the Property it was necessary for her to establish sufficient prospects of success in obtaining the order vesting the Property in her;
(3) the substance of Ms Kimber's case could be distilled into the following propositions (Kimber (No 1), at [14]):
(a) her signing a debtor's petition was driven by desperation arising from a complex set of circumstances involving serious misconduct by Mr Clark, members of the Owners Corporation and others, and also on the part of Judge Driver, including as to the debts that were relied upon which she continues to dispute, and the earlier bankruptcy notices which had not themselves resulted in her bankruptcy;
(b) this included certain additional notes that she provided with her debtor's petition not being sent with that petition to the Official Receiver, being an aspect of serious allegations of misconduct that she made against Mr Clark, which extended to allegations that he had failed in his duties towards her as a trustee;
(c) the conduct she alleged was so serious that not only should this result in an annulment of her bankruptcy, but should also result in the vesting of the home unit in her.
(4) implicitly, Ms Kimber had asserted that if she had not presented the debtor's petition, a creditor's petition then on foot would not have resulted in her bankruptcy;
(5) the annulment application was made more than three and a half years after the debtor's petition was presented;
(6) Ms Kimber had asserted that the delay was a result of her belief that the Trustees would make an annulment application on her behalf. However, the evidence presented by Ms Kimber (including by lengthy cross-examination of Mr Clark) "did not come close to establishing any sound basis for holding any such belief" and the delay was left without any satisfactory explanation;
(7) Ms Kimber's allegations of error and impropriety rose no higher than "bare allegations - mostly based upon assertions made upon her subjective interpretation of documents and events, rather than the proper proof of the factual assertions on which she relies";
(8) Ms Kimber had not been permitted to give a narrative from the witness box of her allegations of the kind she had given from the bar table, as that would not have elevated her allegations and submissions any further;
(9) Ms Kimber had not adduced evidence in any coherent way or made submissions to establish that she had any serious prosects of establishing facts or circumstances sufficient to annul her bankruptcy or to support an order vesting the Property in her;
(10) it was not in the interests of justice to grant the orders Ms Kimber had sought, including because delay in selling the Property would only serve to further dissipate assets available to creditors;
(11) the circumstance that Ms Kimber would lose her place of residence if the orders were not made was a consequence of the bankruptcy regime that could not be avoided;
(12) the conclusions reached did not depend upon the strict application of the rules of evidence. Whilst much of the evidence relied upon by Ms Kimber was in inadmissible form, it had nonetheless been assessed upon the basis of weight;
(13) the evidence was given meagre weight given the seriousness of the allegations made; and
(14) a specific allegation concerning the documents accompanying the debtor's petition was rejected on the facts. On that topic, Bromwich J concluded (Kimber (No 1) at (22]):
... Ms Kimber placed great weight on two out of three pages of additional notes that she furnished with her debtor's petition not being sent to the Official Receiver. I reach the following conclusions about that having happened. The two pages that were not furnished were of the same kind as the page that was furnished and arguably of less significance. The page that was provided referred to not owing certain legal costs being claimed by a creditor, and asserted duress due to the conduct of the then Federal Circuit Court. The latter pages that were not provided referred to duress due to the prospect of losing her home and alleging she had been maliciously targeted by the persons in control of the owners' corporation, along with bias in the court system, and not facing a fair trial, and therefore appointing a trustee to address the threat of unliquidated costs claims. Thus the omitted pages, if anything, explained better her logic in proceeding with a debtor's petition, and afford no clear or obvious sound basis for an annulment, either alone or in combination with the other material that Ms Kimber relies upon. I do not accept that there was anything nefarious in the additional two pages not being sent to the Official Receiver. Rather, I accept Mr Clark's explanation in cross-examination of that omission being the result of an administrative error, an explanation that was not challenged in any of the cross-examination that followed.
Judicial statements to the effect that an allegation of apprehended bias must be distinctly made and clearly established are not to be understood as altering the degrees of likelihood inherent in the test itself: see MZZXM v Minister for Immigration and Border Protection [2016] FCA 405 at [106] and the cases cited therein. Each 'might' in the double might test connotes a degree of likelihood that is lower than that which may be required by the civil standard of proof in an ordinary fact-finding context. It must nonetheless be shown that the reasonable lay observer might apprehend that the decision-maker might have a foreclosed mind. It is not sufficient to demonstrate that the observer may have 'a vague sense of unease or disquiet' on the question: Jones v Australian Competition and Consumer Commission [2002] FCA 1054; (2002) 76 ALD 424 (Jones) at [100] (Weinberg J).
Alleged erroneous application of summary judgment principles
No substantial injustice should the decisions be wrong
I certify that the preceding seventy-five (75) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Charlesworth.
Kimber
Clark as trustee of the estate of Kimber [2025] FCA 979
ALA15 v Minister for Immigration and Border Protection [2016] FCAFC 30
Australian Securities and Investments Commission v Cassimatis [2013] FCA 641; (2013) 220 FCR 256
Burgess v Minister for Immigration and Border Protection [2018] FCA 69; (2018) 259 FCR 197
Ebner v Official Trustee in Bankruptcy [2000] HCA 63; (2000) 205 CLR 337
Isbester v Knox City Council [2015] HCA 20; (2015) 255 CLR 135
Johnson Tiles Pty Ltd v Esso Australia Pty Ltd [2000] FCA 1572; (2000) 104 FCR 564
Kimber v Clark in his capacity as trustee of the property of Kimber [2022] FCAFC 198
Kimber v Clark in his capacity as trustee of the property of Kimber [2023] FCA 310
Kimber v Clark in his capacity as trustee of the property of Kimber (No 3) [2025] FCA 86
Kimber v The Owners Strata Plan No 48216 (No 2) [2018] FCA 406
Kowalski v MMAL Staff Superannuation Fund Pty Ltd [2009] FCAFC 117; (2009) 178 FCR 401
Zoia v Commonwealth Ombudsman Department [2007] FCAFC 143; (2007) 99 ALD 229
(2009) 176 FCR 268
(1991) 33 FCR 397
(2000) 205 CLR 337
(2000) 104 FCR 564
(2009) 178 FCR 401
(2013) 220 FCR 256
(2018) 259 FCR 197
(2015) 255 CLR 135
(2009) 176 FCR 68