Conference hears how IPs missed their own boat

Conferencing is hungry work. Photo: SiN Images 

THERE was opinion aplenty at Dockside recently as the 15th annual Traill & Associates Practical Insolvency Conference played out less than three weeks after the Insolvency Law Reform Act 2016 received Royal Assent on February 29.

Much of that opinion - self interested though it might be - was focussed on what's viewed as the new Act's adversarial tone. 

As one insolvency guru said to SiN: "In introducing the new Act the government claimed that probably 95 per cent—or even 99 per cent—of liquidators were compliant with their legal obligations. If that is the case, the overly prescriptive approach of the ILRA, seemingly anticipating non-compliance, is unnecessary. Lawyers would never stand for this," the irritated guru concluded.

All very well, but might not this outcome be self-inflicted? Conference chairman Richard Fisher AM told SiN he was disappointed that ARITA's predecessor, the IPAA, had failed to respond to the challenge of accepting responsibility for self-regulation at the time it was raised by the Australian Law Reform Commission.

"I am an advocate for self-regulation of the professions subject to the appropriate oversight," he said.

"That position reflects my view that there is no group with a greater interest in the reputation of any professional group for integrity and competence than the members of that group themselves," Fisher said.

Of course, the somewhat resentful reception the new Act has received should not be thought to have influenced the decision by special guest opening speaker the Honourable Alex Hawke MP to withdraw at the last minute.

Bankruptcy professionals convening for congress

Bankruptcy professionals in between sessions at a previous Congress
Image courtesy: Traill & Associates  

IT'S that time of year that bankruptcy trustees and those who work with them convene for Traill & Associates' annual National Practical Bankruptcy Congress, Workshops (and cocktail party).

Organised by Rosie Traill, whose sister Kate was recently appointed to the bench as a Judge of the District Court, the two day get together of body snatchers focuses on practical issues facing trustees and their staff and advisors, bringing together some of the best and most experienced operators for a series of practical workshops and interactive, informal talks.

Speakers include O'Neill Partners' consulting solicitor Sally Nash, Ferrier Hodgson's John Melluish, Norton Rose partner David Goldman, and barrister Sandrah Foda. The focus is on practical solutions to key issues.

For example, the challenges of complying with the various state and ARITA codes of independence will be examined through a review by Melluish and Goldman of the recent Federal Court decision of BC39 Pty Ltd v Rambaldi in the matter of Wharington (Bankrupt) [2014] FCA 1076 (7 October 2014), where an examination summons triggered an intensive examination of the trustees's independence and the DIRRI regime.

There'll also be a Family Law panel discussion and interactive discussions relating to fees and remuneration; after acquired property; voidable transactions; dealing with creditors, bankrupts and sheriffs. 

Barrister Brian Skinner will also host a discussion around the issues a trustee should consider in determining whether a possession-related matter is best pursued through the Supreme or Federal Court. For the full program see: 3rd Annual Bankruptcy Congress

The Congress kicks off on Wednesday, October 28 with a day-long program that concludes with a cocktail party at the ArtHouse Hotel, across the road from the congress venue at the Wesley Centre on Pitt Street. Enquiries should be directed to Congress organiser Rosie Traill at: rtraill@traillassociates.com.au

Got a SiNful tale to tell?

Prentice wins possession after Coshott claims dismissed

The Bunyala Road property of bankrupt
Robert Coshott to be repossessed by Max Prentice.
Photo: SiN Images

BANKRUPTCY trustee Max Prentice has won possession of a rambling property in Bunyala Road, Bellevue Hill valued at up to $4 million.

On Tuesday, Federal Court Judge Robert Buchanan ordered the large residential home vest with Prentice as trustee for sale.

The judge gave the bankrupt, Robert Gilbert Coshott, his wife Ljiljana and their sons James and Michael 42 days to clear out. You can read Coshott V Coshott (2013) here.

The BPS Recovery partner's win, which includes costs, was facilitated by insolvency lawyer Sally Nash. It concludes a relatively short court battle that was preceded by years of litigation between the bankrupt, his former trustee John Burke, and more recently, the bankrupt's son James. 

Burke relinquished the appointment in February this year, leaving the way open for Prentice to attempt to recover a half share of the large home.

Burke passes Coshott baton to Prentice

BPS Recovery partner
Max Prentice. 

IT was an unusual little meeting at the offices of the Official Trustee in Bankruptcy last month.

There were two private trustees present. A third and fourth attended by proxy. And each was vying to take on the trusteeship of the bankrupt estate of Robert Gilbert Coshott.

Coshott is a former solicitor who was struck off the roll in 1997. He was bankrupted in 2008 on a creditors petition filed by Shipton Lodge Cobbity following a dispute over agistment fees.

Before the meeting on March 21 this year the Official Trustee administered the estate, having taken over from former trustee, John Burke on February 25, 2013.

Burke's resignation was approved after he told the Federal Court personal reasons had compounded the difficulty of managing “a very complex bankruptcy administration”.

Keddie queries Donnelly's determinations

 Bankruptcy veteran Max Donnelly
Photo: Ferrier Hodgson 

STRUCK-off solicitor Russell Keddie applied for a review of $1.26 million in creditor interest claims just days before his bankruptcy trustee sought authorisation to pay a pre-Christmas dividend.

In a letter to Max Donnelly, Keddie advises his trustee that he’s filed an application in the Federal Magistrates Court to preserve the 21-day time limit a bankrupt has to challenge trustee determinations of proofs of debt.

The letter – dated November 30 - is signed by Keddie’s lawyer Sally Nash. Accompanying it is a copy of the application and a supporting affidavit dated November 27.

Palm Beach down one bankrupt thanks to Interpol

Vanessa Morris-Jackson leaving
Federal Magistrates Court.
Photo: SiN Images

IT'S not often the burghers of Palm Beach have Interpol to thank for curtailing their community's recondite colony of bankrupts.

Usually the insolvency trustee's personal insolvency agreements limit bankrupt populations in exclusive suburbs, but this time the world police can take the credit.

And while the restraint is probably temporary, the fact remains that since July, bankrupt British businessman Tony Morris has been prevented from returning to his clifftop mansion on Whale Beach Road thanks to a so-called "red flag" attached to his passport.

The flag's presence is not so surprising. Until recently the UK authorities believed Mr Morris harboured an immoderate passion for the contents of certain British pension funds.

This lady’s veto is not for overturning

The property of bankrupt businessman Tony Morris,
which Andrew Wily can't sell without the consent
of Vanessa Morris.

SHE might be a “single mother on a pension” but she can still marshal top QCs and barristers in defense of her realm.

The lady in question is Vanessa Morris (Jackson), who this week saw off a challenge in the Federal Magistrates Court from Armstrong Wily's Andrew Wily.

If Wily's application had been successful, the Palm Beach mansion Mrs Morris occupies would have been sold without her having any say in the transaction.

Palm Beach toddler won't keep Wily awake

Barrister Bridie Nolan.
Photo: SiN Images

ANDREW Wily’s bid to sell the Palm Beach home of accused fraudster and bankrupt Tony Morris has crept a little closer to realisation after lawyers representing Wily and Morris’s wife Vanessa Jackson found common ground over the nap times of a two year old.

Barrister Bridie Nolan, acting for Ms Jackson, told Federal Magistrate Rolf Driver that her client would prefer that inspections of the property by potential purchasers take place between 10.00am and midday, so as to avoid disturbing the slumberings of the Morris’s son.

In response, Sally Nash who is acting for Wily in his capacity as Tony Morris’s bankruptcy trustee told the court the estate agent handling the sale was adamant that between midday and 2.pm was the ideal time.