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[2023] NSWCA 235
Court of Appeal (NSW)
2023-09-22
Adamson JA, Kunc J
Original judgment source is linked above.
Solicitors: Craddock Murray Neumann Lawyers (Respondent) File Number(s): 2022/78376 Decision under appeal Court or tribunal: Supreme Court of New South Wales Jurisdiction: Equity Division Citation: [2022] NSWSC 153 Date of Decision: 22 February 2022 Before: Kunc J File Number(s): 2020/206189; 2021/210771
[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]
HEADNOTE [This headnote is not to be read as part of the judgment] In 2005 the second applicant, Angelo Ferella, and his father, Gustavo Ferella (since deceased), jointly owned a property at Wingadal Place, Point Piper (the property). In October 2005 sequestration orders were made against them in the Federal Court and the Official Trustee in Bankruptcy was appointed to manage their assets. The Official Trustee lodged a caveat over the property. The mortgagee of the property sold it in April 2006. The Ferellas contended that they had purchased the property in their capacity as trustees of the Cavallino Unit Trust and that Riva NSW Pty Ltd, the first applicant, had replaced them as trustee in April 2005, prior to the sequestration orders being made. Since March 2006, Mr Ferella has maintained that the Official Trustee held no interest in the property because it formed part of the trust and that the caveat lodged by the Official Trustee had prevented efforts to refinance. Riva and Mr Ferella have commenced numerous proceedings seeking to hold the Official Trustee accountable for the loss of the property. In July 2020, Riva commenced a proceeding seeking declarations that the property did not vest in the Official Trustee, that there was unconscionable conduct on the part of the Trustee and that the Trustee was a constructive trustee of the balance of the net proceeds of sale of the property for Riva. In 2021 the Official Trustee initiated a separate proceeding seeking orders under the Vexatious Proceedings Act 2008 (NSW) that the 2020 proceedings be permanently stayed and that Angelo Ferella be prohibited from instituting proceedings against the Official Trustee. On 4 March 2023 Kunc J made the orders sought by the Official Trustee. Riva and Mr Ferella sought leave to appeal from those orders. The main issues on appeal were whether: (1) this Court had appellate jurisdiction in this matter, and (2) the applicants should have leave to appeal. The Court held, refusing leave to appeal: As to Issue 1 - jurisdiction (1) Pursuant to s 7(5) of the Jurisdiction of Courts (Cross-vesting) Act 1987 (Cth), appellate jurisdiction with respect to any matter "arising under" the Bankruptcy Act 1966 (Cth) is vested exclusively (with exceptions) in the Full Court of the Federal Court: [12]. (2) For a matter to arise under the Bankruptcy Act it is not enough for the matter to involve or relate to that Act. The claims sought to be agitated by Riva in its substantive proceeding might have given rise to a matter arising under the Bankruptcy Act, but the only issues for determination on the present application for leave to appeal concerned the operation and application of the Vexatious Proceedings Act. Accordingly, s 7(5) was not engaged: [14] - [16]. Felton v Milligan (1971) 124 CLR 367; [1971] HCA 39; Guan v Li [2022] NSWCA 173 applied As to issue (2) - leave to appeal (1) Much of the applicants' case at the hearing turned on the refusal of the primary judge to allow them a further opportunity to replead. However, neither the proposed grounds of appeal nor the summary of argument raised expressly any error on the part of the primary judge in failing to grant an adjournment to allow the applicants to replead. The fresh application presently pending in the Equity Division demonstrated that there was nothing which was truly available as a new cause of action, only discoverable in recent times, was rendered nugatory or otherwise unavailable to the applicants by the course taken by the primary judge: [34]. (2) That Riva enjoyed an element of success in proceedings brought in 2008 and 2009 said nothing about attempts to relitigate matters on which it had been unsuccessful, virtually continuously, in several separate proceedings, over the subsequent 11 years: [36]. (3) Both the challenge to the finding that Mr Ferella had "frequently instituted or conducted vexatious proceedings", and the complaint that the reasoning in finding some proceedings vexatious was inadequate or lacked nuance, were implausible. The primary judge gave careful and detailed consideration to the history of litigation as well as an analysis of the claims in the 2020 proceedings before him and there was no basis for challenge to any of his conclusions: [39]. (4) The applicants failed to satisfy the well-established requirements for leave to appeal. They did not demonstrate that the judgment below was more than merely arguably wrong, and the case did not raise any issue of general principle, nor any clear case of an injustice visited upon the applicants: [41]. The Age Company Ltd v Liu (2013) 82 NSWLR 268; [2013] NSWCA 26; Paramasivam v Sabanathan [2013] NSWCA 362 applied
JUDGMENT
Nature of proceedings
Jurisdiction of Courts
Adjournment application
Question of leave
Costs
Orders
Endnotes
Riva NSW Pty Limited
Official Trustee in Bankruptcy
(1971) 124 CLR 367
(2013) 82 NSWLR 268