Fraser Property Developments P/L v Sommerfeld & Ors

[2005] QCA 242

Queensland Court of Appeal

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Interrogate

Catchwords

1. Bankruptcy
2. › Provable debts
3. › Costs orders
4. › Whether potential or contingent liability for costs is a provable debt
5. › Whether costs order made after bankruptcy is enforceable
6. › Bankruptcy Act 1966 (Cth), ss 58(3), 82
1. Bankruptcy
2. › Stay of proceedings
3. › Fresh step in proceedings
4. › Whether appeal or submissions on appeal constitute fresh step
5. › Whether costs application is fresh step in respect of provable debt
6. › Bankruptcy Act 1966 (Cth), s 58(3)(b)
1. Practice and Procedure
2. › Costs
3. › Costs against bankrupt party
4. › Whether court may order costs against party who became bankrupt after appeal lodged but before judgment

Quick Take

A potential or contingent liability for costs is not a 'provable debt' under s 82 of the Bankruptcy Act 1966 (Cth) unless a costs order has been made before bankruptcy. Accordingly, s 58(3)(b) does not prevent a court from making a costs order against a bankrupt party after bankruptcy, and leave of the Federal Court is not required. Mere argument in support of an appeal does not constitute a 'fresh step' in a proceeding for the purposes of s 58(3)(b).