Perpetual Trustee Company Limited (ACN 000 001 007) v Smith [2010] FCAFC 91

FEDERAL COURT OF AUSTRALIA

Perpetual Trustee Company Limited (ACN 000 001 007) v Smith [2010] FCAFC 91

Citation: Perpetual Trustee Company Limited (ACN 000 001 007) v Smith [2010] FCAFC 91

Appeal from: Haslam v Money for Living (Aust) Pty Ltd [2008] FCA 1536 Application for extension of time: Haslam v Money for Living (Aust) Pty Ltd (No 2) [2008] FCA 1832 Haslam v Money for Living (Aust) Pty Ltd (No 2) [2009] FCA 468

Parties: PERPETUAL TRUSTEE COMPANY LIMITED (ACN 000 001 007) v ESTELL SYLVIA SMITH, THE ESTATE OF ELAINE GAINSFORD, EDWARD JAMES GAINSFORD, ATHOL EASTERBROOK, YVONNE GRAY, WILLIAM BRUCE BURTON, ANNETTE MARION BURTON, ALBERT WALTER DALLY, LORRAINE JOY DALLY, SHIRLEE ESTHER DAVEY, RAYMOND JOHN DEBENHAM, ANNA ROSE KOCSIS, LESLIE LUSPIA KOCSIS and JOYCE DORIS ORCHARD

File number: VID 358 of 2009

Judges: MOORE, DOWSETT AND STONE JJ

Date of judgment: 21 July 2010

Catchwords: CONTRACTS – respondents contracted with Money for Living for the sale of their homes in exchange for a lump sum payment, periodic instalments and a lease for life – Money for Living mortgaged property to appellant – Money for Living wound up – mortgagee sought to enforce rights under mortgage – whether lease prior in time to mortgage

EQUITY – priorities – general principles for determining priority of equitable interests – relevance of time of creation of interest – relevance of failure to caveat

REAL PROPERTY – Torrens Title – exceptions to indefeasibility in s42(2) Transfer of Land Act 1958 (Vic) – whether tenants are tenants in possession within the meaning of that term in s 42(2)(e) – whether mortgagee's registered interest takes priority over unregistered interests of tenants for life where tenancy entered into prior to execution of mortgage