High Court, in proceedings seeking recovery of $8m for the benefit of a bankrupt’s creditors, finds that documents are privileged as the trustee in bankruptcy and the defendant retained a common interest until the rescission of the Deed of Settlement was communicated by the trustee in bankruptcy to the bankrupt, and this common interest was not retrospectively fractured.
Privilege – discovery – trust held to be a sham – keep $8m from creditors of bankrupt - trustee in bankruptcy is claiming in these proceedings that the $8 million is in fact the personal property of the bankrupt and he is now seeking its recovery from the defendant for the benefit of the bankrupt’s creditors - commencement of the common interest between the Trustee and the bankrupt – pleadings - settlement agreement - law relating to common interest privilege - three tranches of documents - when was the common interest fractured? - dominant purpose – documents privileged - Trustee and defendant retained a common interest until the rescission of the Deed of Settlement was communicated by the Trustee to the bankrupt - common interest was not retrospectively fractured - Court orders the parties to engage with each other to see if agreement can be reached regarding all outstanding matters without the need for further court time.