In the matter of Matcove Pty Limited [2020] NSWSC 625

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Matcove Pty Limited [2020] NSWSC 625 Hearing dates: 14-16 and 21 April 2020 Decision date: 25 May 2020 Jurisdiction: Equity - Corporations List Before: Black J Decision: Proceedings dismissed with costs. Parties to make further submissions on whether costs to be awarded against First Plaintiff or all plaintiffs. Catchwords: MORTGAGES AND SECURITIES — Mortgages — Duties, rights and remedies of mortgagor — Equity of redemption — Where borrower offers share in company to secure personal loan — Where share transferred for failure to repay loan by due date — Whether share transfer was seizure of collateral under PPSA subject to PPSA procedural requirements — Where certain PPSA provisions excluded by security deed — Whether transfer is a mortgage subject to equity of redemption — Whether transfer is a conditional sale.

CONTRACTS — Formation — Uncertainty — Intention to contract — Where contract signed and witnessed — Whether absence of essential terms rendered a mere agreement to agree in future.

CONTRACTS — Implied terms — Terms implied in fact — Obviousness — Whether obviousness established where several alternatives are equally available — Whether informality of contract required application of less stringent test for implied terms — Where pleaded implied term does not satisfy necessity requirement. Legislation Cited: - Evidence Act 1995 (NSW), s 136 - Personal Property Security Act 2009 (Cth), s 12, 115, 123, 125, 128, 129, 130, 137, 271 Cases Cited: - Agricultural and Rural Finance Pty Ltd v Gardiner [2008] HCA 57; (2008) 238 CLR 570 - Almona Pty Ltd v Parklea Corporation Pty Ltd [2019] NSWSC 1868 - Alonso v SRS Investments (WA) Pty Ltd [2012] WASC 168 - Ashton v Pratt [2015] NSWCA 12; (2015) 88 NSWLR 281 - Ashton v Pratt [2015] NSWCA 12; (2015) 88 NSWLR 281 - Australis Media Holdings Pty Ltd v Telstra Corporation Ltd (1998) 43 NSWLR 104 - Beaton v McDivitt (1987) 13 NSWLR 162 - BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 - Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153; [2001] NSWCA 61 - Brice v Chambers [2014] QCA 310 - Butt v M'Donald (1896) 7 QLJ 68 - Byrne v Australian Airlines Ltd [1995] HCA 24; (1995) 185 CLR 410 - Carlton & United Breweries Ltd v Tooth & Co Ltd (unreported Hodgson J, 11 June 1985) - Charmelyn Enterprises Pty Limited v Klonis (1981) 2 BPR 9572 - Cheetham v 805 Archer Road Pty Ltd [2015] VSC 96 - CGM Investments v Chelliah [2003] FCA 79 - Cherry v Steele-Park [2017] NSWCA 295; (2017) 96 NSWLR 548 - Codelfa Construction Pty Ltd v State Rail Authority of New South Wales [1982] HCA 24; (1982) 149 CLR 337 - DTR Nominees Pty Ltd v Mona Homes Pty Ltd [1978] HCA 12; (1978) 138 CLR 423 - Epic Feast Pty Ltd v Mawson KLM Holdings Pty Ltd (1998) 71 SASR 161 - Ermogenous v Greek Orthodox Community of SA Inc [2002] HCA 8; (2002) 209 CLR 95 - Fitzgerald v Masters [1956] HCA 53; (1956) 95 CLR 420 - Fullers' Theatres Ltd v Musgrove (1923) 31 CLR 524 - G and C Kreglinger v New Patagonia Meat and Cold Storage Co Ltd [1914] AC 25 - Gupta v Fordham Laboratories Pty Ltd [2018] NSWSC 551 - Hawkins v Clayton (1988) 164 CLR 539 - Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41 - Hussain v Haynoum Developments Pty Ltd [2015] NSWCA 430 - Kumar v Satsang Hindu Maha Sabha of NSW Incorporated [2019] NSWSC 134 - Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd (1989) 166 CLR 623 - Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd [2007] HCA 61 - Lift Capital Partners Pty Ltd (in liq) v Merrill Lynch International [2009] NSWSC 7; (2009) 73 NSWLR 404 - Liverpool City Council v Irwin [1977] AC 239 - Mackay v Dick (1881) 6 App Cas 251 - Marquess of Northampton v Pollock (1890) 45 Ch D 190 - Miller v Hancock [1893] 2 QB 177 - Multiservice Bookbinding Limited v Marden [1979] 1 Ch 84 - NSW Land and Housing Corp v Diab [2015] NSWCA 133 - Re CF Mellick Pty Ltd [2019] NSWSC 1756 - Re Leslie Muir Holdings Pty Limited [2019] NSWSC 1519 - Re Mango Credit Pty Ltd [2016] NSWSC 199 - Re Modular Design Group Pty Ltd (Receiver and Manager Appointed) (in liq) (1994) 35 NSWLR 96 - Rinehart v Hancock Prospecting Pty Ltd; Rinehart v Rinehart [2019] HCA 13; (2019) 366 ALR 635 - RPR Maintenance Pty Ltd v Marmax Investments Pty Ltd [2014] FCA 409 - Ross T Smyth & Co Ltd v TD Bailey Son & Co [1940] 3 All ER 60 - Ryder v Frohlich [2004] NSWCA 472 - Southern Cross Autoglass Pty Ltd v Protector Glass Industries Pty Ltd [2014] NSWSC 261 - Summers v Commonwealth (1918) 25 CLR 144 - Sun North Investments Pty Ltd (as Trustee of Sun Development Trust) v Dale [2013] QSC 44; [2014] 1 Qd R 369 - The Edge Development Group Pty Ltd v Jack Road Investments Pty Ltd [2018] VSC 326 - Tim Barr Pty Ltd v Narui Gold Coast Pty Ltd [2010] NSWSC 29 - Upper Hunter County District Council v Australian Chilling and Freezing Co Ltd (1968) 118 CLR 429 - Vanguard Financial Planners Pty Ltd v Ale [2018] NSWSC 314 - Westfield Holdings Limited v Australian Capital Television Pty Ltd (1992) 32 NSWLR 194 - Wily v Endeavour Health-Care Services Pty Ltd (No 5) (2003) 11 BPR 21,081 Texts Cited: - JW Carter, Carter's Breach of Contract, LexisNexis Butterworths (2011) - ICF Spry, Principles of Equitable Remedies (2009) Category: Principal judgment Parties: Eric Andrew Fuller (First Plaintiff) Andrew Simon John Fuller (Second Plaintiff) Todd Christopher Fuller (Third Plaintiff) Daniel Eric Neill Fuller (Fourth Plaintiff) Kerry Albert (First Defendant) Matcove Pty Limited (Second Defendant) Moonee Developments Pty Ltd (Third Defendant) Cassie Albert (Fourth Defendant) Tristan Albert (Fifth Defendant) Sandra May Albert (Sixth Defendant) Representation: Counsel: D Cook SC/P Afshar (Plaintiffs) CRC Newlinds SC/M Hall (First, Fourth-Sixth Defendants)