McMillan v Warner (Trustee) [2022] FCAFC 20 (23 February 2022) (Logan, Farrell and Halley JJ)


Catchwords:


BANKRUPTCY – appeal – where property was transferred to the appellant for $1 and the transferor subsequently became bankrupt – where 16 years had elapsed between the transfer and bankruptcy – where there was no temporal nexus between the creditors at the time of the transfer and the subsequent bankruptcy –where the primary judge rejected the transferor’s evidence as to his purpose in making the transfer – whether the transferor’s main purpose was to prevent the property becoming divisible among creditors or to hinder or delay the process of making that property available for division among creditors in contravention of s 121(1)(b) of the Bankruptcy Act 1966 (Cth) – whether the primary judge erred in concluding that a reasonable and definite inference was available that the transferor’s main purpose was to defeat creditors – whether the primary judge made findings that went outside the pleaded case – whether the primary judge erred in making an adverse credibility finding against the transferor – whether the transferor had embarked upon a risky venture –– appeal allowed

EVIDENCE – whether the primary judge erred in drawing Jones v Dunkel inferences