RnD Funding Pty Limited v Roncane Pty Limited [2023] FCAFC 28

Federal Court of Australia

RnD Funding Pty Limited v Roncane Pty Limited [2023] FCAFC 28 Appeal from: Goldus Pty Ltd (Subject to Deed of Company Arrangement) v Cummins (No 4) [2021] FCA 1095 Goldus Pty Ltd (Subject to Deed of Company Arrangement) v Cummins (No 5) [2021] FCA 1352 RnD Funding Pty Ltd v Goldus Pty Ltd (Subject to Deed of Company Arrangement) [2021] FCA 1096

File number: NSD 1209 of 2021

Judgment of: BEACH, DERRINGTON AND HALLEY JJ

Date of judgment: 9 March 2023

Catchwords: EQUITY – tracing – holder of equitable charge seeks to trace into assets acquired with funds subject to crystallised charge – whether sufficient proprietary base to invoke right to trace in equity – whether antecedent breach of fiduciary duty required before a right to trace arises – whether underlying rationale for tracing is an interest in property or the existence of a breach of duty owed in respect of the property – whether Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296 requires antecedent breach of duty EQUITY – tracing – right of holder of security to trace into property acquired with funds subject of a security interest – whether right to trace distinct from right to trace in equity

Cases cited: Agip (Africa) Ltd v Jackson [1991] Ch 547 Attorney-General for Hong Kong v Reid [1994] 1 AC 324 Australian Securities and Investments Commission v GDK Financial Solutions Pty Ltd (in liq) (No 5) [2008] FCA 1700 AVCO Financial Services Ltd v Commonwealth Bank of Australia (1989) 17 NSWLR 679 Belmont Finance Corporation v Williams Furniture Ltd (No 2) [1980] 1 All ER 393 Black v S Freedman & Company (1910) 10 CLR 105 Boscawen v Bajwa [1996] 1 WLR 328 Buhr v Barclays Bank plc [2001] EWCA Civ 1223 Bunnings Group Ltd v Asden Developments Pty Ltd [2014] 1 Qd R 493 CFHW Pty Ltd v Burness [2014] VSC 451 Chase Manhattan Bank NA v Israel-British Bank (London) Ltd [1981] Ch 105 Commissioner of Stamp Duties (Queensland) v Livingston [1965] AC 694 Commonwealth Bank of Australia v Saleh [2007] NSWSC 903 Creak v James Moore & Sons Pty Ltd (1912) 15 CLR 426 Dick v Harper [2006] BPIR 20 El Ajou v Dollar Land Holdings plc [1993] 3 All ER 717 Elliot v Secretary, Department of Education, Employment & Workplace Relations (2008) 249 ALR 182 Foskett v McKeown [2001] 1 AC 102 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296 Hamersley Iron Pty Ltd v Forge Group Power Pty Ltd (2018) 53 WAR 325 Heperu Pty Ltd v Belle (2009) 76 NSWLR 230 Hurt v Freeman [2002] NSWSC 264 In re Diplock [1948] Ch 465 In re Hallett's Estate (1879) 13 Ch D 696 Latec Investments Ltd v Hotel Terrigal Pty Ltd (1956) 113 CLR 256 Muschinski v Dodds (1986) 160 CLR 583 Official Trustee in Bankruptcy v Alvaro (1996) 66 FCR 372 Opus Productions Pty Ltd v Popwing Pty Ltd (unreported, Supreme Court of New South Wales, Santow J, 28 February 1995) Orb ARL v Ruhan [2015] EWHC 262 (Comm) Re Brumm [1942] St R Qd 52 Re Global Finance Group Pty Ltd (in liq) (2002) 26 WAR 385 Re Lovett [1966] VR 65 Re Oatway; Hertslet v Oatway [1903] 2 Ch 356 Robb Evans of Robb Evans & Associates v European Bank Ltd (2004) 61 NSWLR 75 Shalson v Russo [2005] Ch 281 Sinclair v Brougham [1914] AC 398 Stephenson Nominees Pty Ltd v Official Receiver (1987) 16 FCR 536 Toksoz v Westpac Banking Corporation (2012) 289 ALR 577 Twigg v Twigg [2022] NSWCA 68 Westdeutsche Landesbank Girozentrale v Islington London Borough Council [1996] 2 WLR 802 Woodson (Sales) Pty Ltd v Woodson (Aust) Pty Ltd (1996) 7 BPR 14,685