On 11 October 2023, the Federal Court of Australia handed down its judgment in the case of the Official Trustee in Bankruptcy v Kent [2023] FCA 1211.
The Official Trustee has carefully reviewed his Honour’s reasons and has decided not to appeal the decision to the Full Court of the Federal Court.
The Official Trustee is carefully considering the implications of the judgment of the Official Trustee’s management of estates.
The Official Trustee brought this proceeding to clarify the correct legal position for registered trustees, bankrupts and industry stakeholders.
His Honour, Acting Chief Justice, Rares, found that a compensation claim via the Australian Financial Complaints Authority (AFCA) brought by a former bankrupt (Mr Kent) is not property of the bankrupt which vests in the trustee under the Bankruptcy Act.
