Spalla v St George Wholesale Finance Pty Ltd [1999] FCA 1566

FEDERAL COURT OF AUSTRALIA

Spalla v St George Wholesale Finance Pty Ltd [1999] FCA 1566

RECEIVERS – motor car dealers – default under floor plan agreements – appointment of receivers – whether default in payment – whether insolvency – whether chargees estopped by reason of earlier indulgences granted CHEQUES – cheque delivered to payee on express oral condition that it not be presented on that day and not on any subsequent day unless advised by drawer that funds were in the account – whether condition effective CHATTEL SECURITIES – vehicles bailed by financier to dealer – obligation to pay proceeds of sale to financier within three days of receipt – whether dealer acquired title – whether financier became unsecured creditor – whether right of subrogation under Chattel Securities Act 1987 (Vic) s 7(7)

Chattel Securities Act 1987 (Vic) ss 3,7 Cheques and Payment Orders Act 1986 (Cth) s 27 Bills of Exchange Act 1909 (Cth) s 26(2)(b) Carlos v Fancourt (1794) 5 TR 482 at 486; 101 ER 272 at 274 referred to Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 referred to Goeldner v Marshall (1913) 15 WALR 50 referred to Commercial Bank of Windsor v Angus Morrison (1902) 32 SCR 98 referred to Jones v Thomas and Norman (1922) 65 DLR 491 referred to Equitable Securities Ltd v Neil [1987] 1 NZLR 233 at 239-40 referred to New London Credit Syndicate v Neale [1898] 2 QB 487 referred to Jeffries v Austin (1725) 1 Stra 674 referred to Hitchings and Coulthurst Co v Northern Leather Co of America [1914] 3 KB 907 referred to Thusi Pty Ltd v Neonbrook Pty Ltd [1999] 1 Qd R 429 referred to Macdonald v Whitfield (1883) LR 8 App Cas 733 at 745 referred to Devries v Australian National Railways Commission (1993) 177 CLR 472 at 479 referred to State Rail Authority of New South Wales v Earthline Constructions Pty Ltd (in liq) (1999) 160 ALR 588 referred to Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 at 581-2 referred to Byles on Bills of Exchange (26th ed) (at 399)