Dinmore Meatworks Pty Ltd v Kerr [1962] HCA 47

High Court of Australia Kitto, Windeyer and Owen JJ. Dinmore Meatworks Pty Ltd v Kerr [1962] HCA 47

ORDER Appeal dismissed with costs.

Cur. adv. vult.

The Court delivered the following written judgment:—

Sept. 12 Kitto, Windeyer and Owen JJ.

This is an appeal from a decision of Mansfield C.J. given on a motion for the determination of questions arising in a voluntary liquidation. It is convenient first to consider the scope of the common law doctrine on which the appellant seeks to rely; for when this is correctly appreciated its application to the facts of this case presents no difficulty, and the answer to the question on which the appeal turns becomes apparent.

It is a long established principle that if a chattel be delivered to a man so that he may for reward do work upon it, as for example by repairing or altering it or making something of it, he may, having completed the work retain possession of it until he has been paid for his work. This lien prevails against the owner if it was he who delivered the chattel to the man who was to do the work and also if it was delivered by a bailee with the express or implied authority of the owner. Such a lien has two characteristics that are of critical importance in the present case. It is a possessory lien, and it is a particular lien. To say that it is a possessory lien means that — apart from any statutory extension of his common law rights — the lienee's only right is to keep possession of the article until he is paid for his work on it. If he voluntarily surrenders possession of it to the owner his lien is lost. To say that it is a particular lien means that, apart from express agreement, the workman is only entitled to retain the article until the indebtedness for the work done upon that article has been paid. He cannot, as in the case of a general lien, retain it until all moneys owing to him on any account have been paid. If the owner be willing to pay the particular amount owing in respect of work done on the article, the workman must relinquish his lien on it and deliver it up, although there be other moneys due to him for work done on other articles or otherwise.