Hollister Developments P/L v. Custom Credit Corporation Ltd [1994] FCA 860

JUDGMENT No, om. S8.0.9 2%. CATCHWORDS

TRADE PRACTICES - finance for unit development and subdivision - misleading or

deceptive conduct - whether representations by financier of intentions to advance moneys and pay outstanding trade creditors - whether appointment of receiver valid -

whether trespass.

'Irade Practices Act 1974 s 52

HOLLISTER DEVELOPMENTS PTY LIMITED (RECEIVER AND MANAGER

APPOINTED) v. CUSTOM CREDIT CORPORATION LIMITED No. WAG 36 of 1992

FRENCH J. PERTH 16 November 1994

RECEIVED 17 NOV 1994

FEDERAL COURT OF AUSTRALIA

PRINCIPAL REGISTRY

IN THE FEDERAL COURT ) OF AUSIRALIA ) WESTERN AUSTRALIA ) DISTRICT REGISTRY )

)

GENERAL DIVISION No. WG 36 of 1992

BETWEEN: HOLLISTER DEVELOPMENTS PTY LIMITED (PECEIVER AND MANAGER APPOINTED) Applicant

and

CUSTOM CREDIT CORPORATION LIMITED

Respondent

MINUTE OF ORDER JUDGE MAKING ORDER. FRENCH J.

DATE OF ORDER: 16 NOVEMBER 1994

WHERE MADE: PERTH

THE COURT ORDERS THAT:

1. The apphcation is dismissed.

2. The applicant 1s to pay the respondent the sum of $3,573,395.

3. The applicant 1s to pay the respondent's costs of the application and of

the cross claim to be taxed.

NOTE: Settlement and entry of Orders 1s dealt with in Order 36 of the

Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA WESTERN AUSTRALIA DISTRICT REGISTRY GENERAL DIVISION

No. 36 of 1992 BETWEEN: HOLLISTER DEVELOPMENTS PTY LIMITED (RECEIVER AND MANAGER APPOINTED) Applicant and CUSTOM CREDIT CORPORATION Respondent CORAM: FRENCH J. 16 NOVEMBER 1994

REASONS FOR JUDGMENT

Introduction

Hollister Developments Pty Limuted (Hollister Developments) 1s a land developer and builder which undertook a project involving the construction of home units and the subdivision of land at Kenwick Although imtually financed by Citibank Savings Limited, the developer sought refinancing from Custom Credit Corporation Limited (Custom Credit). Custom Credit advanced Hollister Developments the sum of $1.35 millon. Subsequently, Hollister Developments encountered cashflow problems and had further discussions with Custom Credit about additional finance. It maintains that Custom Credit made certain representations in the course of those discussions and subsequent correspondence, they being representations about its intentions to advance moneys to Hollister Developments and to pay outstanding trade creditors so that the project could proceed. Hollister Developments asserts that Custom Credit has not honoured its commitments, has engaged in misleading or deceptive conduct and has wrongly appomted receivers over the property the subyect of the development project. It claims damages under various heads and other rehef.