Martins Agencies Ltd v Commonwealth Trading Bank & Ors [1986] FCA 216

CATCHWORDS

REAL PROPERTY - Priorities - Land in Norfolk Island subject to two mortgages registered under Convevancing Ordinance 1913 - agreement to qrant second mortgage to plaintiff on discharge of reqistered second mortgage - Notification of Interest lLoddaed - third mortgage registered - property sald to.purchaser with notice of agreement - purchaser financing transaction by mortgage - constructive notice of martaagees - whether plaintiff entitled to priority.

- Conveyancing Ordinance 1913 (Norfolk Island) - whether equitable interests in land mav be created.

EQUITY - Notice - effect of notice of agreement to grant mortaage - defendants not entitled to ignore claim of plaintiff

- Constructive Trust - receipt of monevs on settlement by mortgagee with notice of prior claim

- Specific Performance - agreement to grant mortgage "in the form prepared by" solicitors for intending moartaagee - whether concluded agreement - whether sufficiently certain - whether capable of specific performance

MORTGAGE - Agreement to grant mortgage - whether creating equitable mortgage - availability of specific performance

Conveyancing Ordinance 1913 (Norfolk Island) ss.3. 4, 12 Powers of Attorney Ordinance 1959 (Norfolk Island) s.1l

Axelsen v. O'Brien (1949) 80 C.L.R. 219 ref''d ta Godecke v, Kirwan (1973) 129 C.L.R. 620 ref'd to Hermann v. Hodges (1873) 16 Eq, 18 ref'd to Ashton v. Corrigan (1871) 13 Eq. 76 ref'd ta Whitlev v. Challis (1892) 1 Ch. 64 cons

Farmer v. Pitt (1902) 1 Ch. 954 ref'd ta

MARTINS AGENCIES LIMITED v. COMMONWEALTH TRADING RANK & ORS.

No. SC 1 of 1985

Coram: Fox CJ. 13 May 1986

Sydney

IN _THE SUPREME COURT

OF NORFOLK TSLAND

* Denattetinns

' NO. SC 1 of 1985

BETWEEN :

MARTINS AGENCIES LIMITED Plaintiff

AND:

COMMONWEALTH TRADING BANK OF AUSTRALIA

First Defendant AND:

NOEL JOSEPH MAY and JACQUELINE MAY