Rheem Australia Pty Ltd v McInnes [2020] NSWSC 1313

Supreme Court New South Wales

Medium Neutral Citation: Rheem Australia Pty Ltd v McInnes [2020] NSWSC 1313 Hearing dates: 14, 15, 16 July 2020; further written submissions ending 27 July 2020 Date of orders: 30 September 2020 Decision date: 30 September 2020 Jurisdiction: Equity Before: Parker J Decision: See [266]-[273] Catchwords: RESTITUTION — restitution for wrongdoing — monies obtained by fraud — claim against volunteer recipient under Heperu Pty Ltd v Belle (2009) 76 NSWLR 230— disposition with intent to defraud creditors — Conveyancing Act 1919 (NSW), s 37A EQUITY — tracing — mixed funds — multiple bank accounts — whether tracing should be undertaken on aggregated basis — residential property — building work expenditure — mortgage repayments — proprietary claim — subrogation — indefeasibility Legislation Cited: Conveyancing Act 1919 (NSW), s 37A Corporations Act 2001 (Cth), ss 1317H, 1041I Family Law Act 1975 (Cth), s 79 Real Property Act 1900 (NSW), s 42 Cases Cited: Akierman Holdings Pty Ltd v Akerman (No 2) [2020] NSWSC 970 Banque Financière de la Cité v Parc (Battersea) Ltd [1999] 1 AC 221 Black v S Freedman & Co (1910) 12 CLR 105 Bofinger v Kingsway Group Ltd (2009) 239 CLR 269 Boscawen v Bajwa [1996] 1 WLR 328 Break Fast Investments Pty Ltd v Giannopoulos [2011] NSWSC 1508 Caron v Jahani (No 2) [2020] NSWCA 117 Challenger Managed Investments Ltd v Direct Money Corporation Pty Ltd [2003] NSWSC 1072 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89 Federal Republic of Brazil v Durant International Corporation [2016] AC 297 Georges v Seaborn International (2012) 288 ALR 240 Harmer v Commissioner of Taxation (1991) 173 CLR 264 Heperu Pty Ltd v Belle (2009) 76 NSWLR 230 Heperu Pty Ltd v Belle [2011] NSWSC 1151 Leighton Contractors [2016] QSC 223 Marcolongo v Chen (2011) 242 CLR 546 Nguyen v Corbett (No 2) [2018] NSWSC 441 Re Diplock [1948] Ch 465 Relfo Limited v Varsani [2014] EWCA Civ 360 Sze Tu v Lowe (2014) 89 NSWLR 317 Toksoz v Westpac Banking Corporation [2012] NSWCA 199 Texts Cited: Smith, L, Law of Tracing (Clarendon Press, 1997) Category: Principal judgment Parties: Rheem Australia Pty Ltd (Plaintiff) Paul Bruce McInnes (First Defendant) Nicole Maree McInnes (Second Defendant) Representation: Counsel: A Leopold SC/D Robertson (Plaintiff) GES Ng (Second Defendant)