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[2009] FMCA 41
Federal Magistrates Court of Australia
2009-02-23
Original judgment source is linked above.
Discharge from liability for the child support debt
It has been said by the authorities more than once that unless the court is satisfied that a man in receipt of income derived from his earnings or otherwise will be able to provide support for himself and his dependants to live on, or is satisfied that he is likely to inherit or otherwise succeed to property, it ought not to impose unduly burdensome conditions so that he cannot improve his position in life and remove all incentive for exertion on his part.[89]
prior to the date of his bankruptcy, during the period of his bankruptcy, and since his discharge from bankruptcy.
I certify that the preceding one hundred and four (104) paragraphs are a true copy of the reasons for judgment of Lucev FM
[1] Wherever possible the phrase "child support debt" has been used in these Reasons for Judgment to describe the debt which Mr Segler applies to have discharged, rather than the more general "maintenance debt" which can refer to debts other than child support debts.
[2] "Bankruptcy Act." In these Reasons for Judgment all references to sections of an Act are to the Bankruptcy Act unless otherwise indicated.
[3] "Jurisdiction Issue". The issue of the extent to which the Court can order discharge of a child support debt was not part of the two issues for argument at hearing (see the Court's Orders of 23 April 2008), but the parties agreed that the Court had jurisdiction to discharge a child support debt, and the real issue for argument at hearing became the extent of the power to discharge a child support debt.
[6] Affidavit of Reginald Keith Parnell, filed 5 May 2008, para.10 and annexure RKP 1. ("Mr Parnell's 5 May 2008 Affidavit").
[8] Affidavit of Reginald Keith Parnell sworn 15 May 2008, para.13 ("Mr Parnell's 15 May 2008 Affidavit").
[9] Mr Parnell's 15 May 2008 Affidavit, para.40.
[10] Mr Parnell's 15 May 2008 Affidavit, para.46.
[11] Mr Parnell's 15 May 2008 Affidavit, para.50.
[12] Mr Parnell's 15 May 2008 Affidavit, paras.27 and 34.
[14] Mr Parnell's 15 May 2008 Affidavit, paras.29, 32 and 33, and Annexure RKP 4 to Mr Parnell's 11 March 2008 Affidavit.
[15] Mr Parnell's 15 May 2008 Affidavit, para.47, and Annexure RKP 8 to Mr Parnell's 11 March 2008 Affidavit.
[16] Mr Parnell's 15 May 2008 Affidavit, para.47, and Annexure RKP 8 to Mr Parnell's 11 March 2008 Affidavit.
[17] Mr Parnell's 15 May 2008 Affidavit, para.52.
[18] Mr Parnell's 15 May 2008 Affidavit, paras.53, 55 and 58 ("the September 2005 Orders").
[19] Mr Parnell's 15 May 2008 Affidavit, paras.59 and 61.
[20] Mr Parnell's 15 May 2008 Affidavit, paragraph 56.
[22] R v Bolton [1841] EngR 193; [1835-42] All ER Rep 71 at 73 per Lord Denman CJ ("Bolton").
[23] Bolton at 73-74 per Lord Denman CJ; Federated Engine-Drivers & Firemen's Association v Broken Hill Proprietary Co Ltd [1911] HCA 31; (1911) 12 CLR 398 at 415 per Griffith CJ ("FEDFA"). See also FEDFA at 428 per Barton J and 454 per Isaacs J and Re Boulton; Ex parte Construction, Forestry, Mining and Energy Union (1998) 73 ALJR 129 at 133 per Kirby J.
[24] Bankruptcy Legislation Amendment Act 1996 (Cth) ("Bankruptcy Amendment Act 1996"), Schedule 1, Items 108, 109 and 446.
[25] As defined in s.5, and set out below at para.34.
[26] (1995) 60 FCR 68 ("Stewart").
[28] Bacon's Abridgement (5th Edn), Vol.1. at page 448, citing the argument of Lord Chief Baron Hale in Manby v Scott.
[30] Victor v Victor [1912] 1 KB 247 distinguishing between annuities payable under a contract or deed upon separation, which were provable debts in bankruptcy, from alimony under orders of the Divorce Court on judicial separation, which were not debts provable in bankruptcy: see at 252 per Cozens-Hardy MR and 252-253 per Fletcher Moulton LJ; Dewe v Dewe; Snowdon v Snowdon [1928] P 113 at 119-120 per Lord Merrivale; Paquine v Snary [1909] 1 KB 688 at 690 per Vaughan Williams LJ.
[31] DC Pearce "Bankruptcy and Arrears of Maintenance" (1969) 43 ALJ 560 at 562 ("Pearce - Arrears of Maintenance").
[33] (1941) 12 ABC 193 ("Carter").
[35] (1943) 13 ABC 238 ("Canobbio").
[36] Canobbio at 243-244 per Clyne J.
[37] (1959) 19 ABC 10 ("Frankel").
[40] (1945) 13 ABC 185 ("Partridge").
[41] Partridge at 187-188 per Clyne J.
[42] [1951] HCA 47; (1951) 84 CLR 362 ("Opie").
[43] Opie at 372-373 per Dixon and Williams JJ, and 374-375 per McTiernan J.
[44] [1897] VicLawRp 117; (1974) 22 FLR 460 ("Morris").
[46] Much of the preceding and subsequent history of the relevant legislation and case law in these reasons for judgment reflects the careful and considered reasons for judgment in Morris, which obviously owe a debt to the scholarship in Pearce - Arrears of Maintenance.
[47] Pearce -Arrears of Maintenance at 562 (cited in Morris at 464 per Riley J).
[50] Clyne Committee Report at para.237.
[55] Morris at 471 per Riley J. Morris was decided before the inclusion of s.82(1A).
[58] Bankruptcy Amendment Bill 1979, Explanatory Memorandum, page 90 ("1979 Explanatory Memorandum").
[59] 1979 Explanatory Memorandum, page 90. See now the definitions in s.5 of the Bankruptcy Act set out at para.34 above.
[60] PP McQuade and MGR Gronow, McDonald, Henry and Meek, Australian Bankruptcy Law and Practice (Sydney: Law Book Co, 1996) ("ABLP").
[62] (2005) 227 CLR 234; [2005] HCA 67 ("Coventry").
[63] Coventry CLR at 243-246 per Gleeson CJ, Gummow, Hayne and Callinan JJ; HCA at paras.22-27 per Gleeson CJ, Gummow, Hayne and Callinan JJ.
[64] Coventry CLR at 246 per Gleeson CJ, Gummow, Hayne and Callinan JJ; HCA at para.27 per Gleeson CJ, Gummow, Hayne and Callinan JJ. See also Coventry CLR at 253 per Gleeson CJ, Gummow, Hayne and Callinan JJ; HCA at para.51 per Gleeson CJ, Gummow, Hayne and Callinan JJ, observing that "the drafting of the relevant provisions of the Bankruptcy Act 1966 [is] for all practical purposes identical to the statutory language considered in those [19th century English] cases.
[65] Coventry CLR at 238 per Gleeson CJ, Gummow, Hayne and Callinan JJ; HCA at para.5 per Gleeson CJ, Gummow, Hayne and Callinan JJ.
[66] Coventry CLR at 241 per Gleeson CJ, Gummow, Hayne and Callinan JJ; HCA at para.17 per Gleeson CJ, Gummow, Hayne and Callinan JJ.
[67] Coventry CLR at 243 per Gleeson CJ, Gummow, Hayne and Callinan JJ; HCA at para.20 per Gleeson CJ, Gummow, Hayne and Callinan JJ.
[68] Coventry CLR at 253 per Gleeson CJ, Gummow, Hayne and Callinan JJ; HCA at para.50 per Gleeson CJ, Gummow, Hayne and Callinan JJ.
[69] Coventry CLR at 257 per Gleeson CJ, Gummow, Hayne and Callinan JJ; HCA at para.70 per Gleeson CJ, Gummow, Hayne and Callinan JJ.
[71] Bankruptcy Legislation Amendment Act 1996 (Cth) ("Bankruptcy Amendment Act 1996"), Schedule 1, Item 182.
[72] Bankruptcy Amendment Bill 1979, Explanatory Memorandum_,_ para.75.2.
[73] Bankruptcy Amendment Act 1996, Schedule 1, Item 453_._
[82] Coventry CLR at 243 per Gleeson CJ, Gummow, Hayne and Callinan JJ; HCA at para.20 per Gleeson CJ, Gummow, Hayne and Callinan JJ.
[83] Coventry CLR at 241 per Gleeson CJ, Gummow, Hayne and Callinan JJ; HCA at para.17 per Gleeson CJ, Gummow, Hayne and Callinan JJ.
[84] Morris at 472 per Riley J; Stewart at 80 per Cooper J.
[85] Applicant's discharge submissions, para.1.
[86] Applicant's discharge submissions, para.2 citing Stewart at 78 per Cooper J.
[87] [1979] FCA 2; (1979) 36 FLR 268 ("Reilly").
[89] Reilly at 279-280 per Lockhart J.
[90] Reilly at 280 per Lockhart J citing Re Hawkins; Ex parte Official Receiver [1892] 1QB 890 at 893 per Vaughan Williams J.
[98] See also Reilly at 278-280 per Lockhart J.
[99] See the conclusion reached at para.81 above.
[100] Reilly at 278 per Lockhart J; Stewart at 79 per Cooper J.
Segler
Child Support Registrar [2009] FMCA 41
Coventry & Ors v Charter Pacific Corporation Ltd & Anor (2005) 227 CLR 234; [2005] HCA 67
Federated Engine-Drivers & Firemen's Association v Broken Hill Proprietary Co Ltd [1911] HCA 31; (1911) 12 CLR 398
Opie v Opie [1951] HCA 47; (1951) 84 CLR 362
Re Reilly; Ex parte Debtor [1979] FCA 2; (1979) 36 FLR 268
(2005) 227 CLR 234
(1911) 12 CLR 398
(1951) 84 CLR 362
(1998) 73 ALJR 129
(1974) 22 FLR 460
(1979) 36 FLR 268
(1995) 60 FCR 68