Jin Lian Group Pty Ltd (in liq) v ACapital Finance Pty Ltd [2021] NSWSC 931

Supreme Court New South Wales

Medium Neutral Citation: Jin Lian Group Pty Ltd (in liq) v ACapital Finance Pty Ltd [2021] NSWSC 931 Hearing dates: 22 - 23 April, 9 June 2021; further written submissions 10 and 16 June 2021 Decision date: 29 July 2021 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Proceedings dismissed Catchwords: CONTRACTS – Construction – Interpretation – where mortgagee exercised power of sale and recovered entire amount claimed – whether mortgagee retained from proceeds more than its entitlement – proper construction of facility deed and mortgages entered into as part of one transaction RESTRICTIVE TRADE PRACTICES – exclusive dealing – third line forcing – whether lender imposed condition that borrower enter deed of guarantee with named company – special federal matter – whether s 47(6) of Competition and Consumer Act 2010 (Cth) engaged – whether lender required use of discrete services – whether effect of any contravention of s 47 is that guarantee fee agreement void Legislation Cited: Civil Procedure Act 2005 (NSW) Competition and Consumer Act 2010 (Cth) Jurisdiction of Courts (Cross-vesting) Act 1987 (NSW) Real Property Act 1900 (NSW) Cases Cited: Acron Pacific Ltd v Offshore Oil NL (1985) 157 CLR 514; [1985] HCA 63 Andrews v Australia and New Zealand Banking Group Ltd (2012) 247 CLR 205; [2012] HCA 30 Arab Bank Australia Ltd v Sayde Developments Pty Ltd (2016) 93 NSWLR 231; [2016] NSWCA 328 Australia Capital Financial Management Pty Ltd v Linfield Developments Pty Ltd; Guan v Linfield Developments Pty Ltd [2017] NSWCA 99 Australian Competition and Consumer Commission v Bill Express Ltd (in liq) (2009) 180 FCR 105; [2009] FCA 1022 Australian Competition and Consumer Commission v IMB Group Pty Ltd [2002] FCA 402 Boyded Industries Pty Ltd v Gateway Parramatta Two Pty Ltd [2020] NSWSC 1368 Castlemaine Tooheys Ltd v Williams & Hodgson Transport Pty Ltd (1986) 162 CLR 395; [1986] HCA 72 David Securities Pty Ltd v Commonwealth Bank of Australia (1990) 23 FCR 1 Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79 Golden J Wealth Pty Ltd v AC Holdings Co Pty Ltd [2019] NSWSC 1342 James v James (No 2) [2019] NSWSC 116 Jin Niu Investments Pty Ltd v Wang [2019] NSWSC 1697 Kellas-Sharpe v PSAL Ltd [2013] 2 Qd R 233; [2012] QCA 371 King Investment Solutions Pty Ltd v Hussain (2005) 64 NSWLR 441; [2005] NSWSC 1076 Kowalczuk v Accom Finance Pty Ltd (2008) 77 NSWLR 205; [2008] NSWCA 343 Mascarello v Registrar-General of NSW [2018] NSWSC 284 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 O'Dea v Allstates Leasing System (WA) Pty Ltd (1983) 152 CLR 359; [1983] HCA 3 Oak Capital Mortgage Fund Ltd v Dlakic [2019] NSWSC 1538 Paciocco v Australia and New Zealand Banking Group Ltd (2015) 236 FCR 199; [2015] FCAFC 50 Paciocco v Australia and New Zealand Banking Group Ltd (2016) 258 CLR 525; [2016] HCA 28 Paul Dainty Corp Pty Ltd v National Tennis Centre Trust (1990) 22 FCR 495 PT Thiess Contractors Indonesia v PT Arutmin Indonesia [2015] QSC 123 Rieson v SST Consulting Services Pty Ltd (2005) 142 FCR 482; [2005] FCAFC 6 SST Consulting Services Pty Ltd v Rieson (2006) 225 CLR 516; [2006] HCA 31 Texts Cited: K Lewison & D Hughes, The Interpretation of Contracts in Australia (2012, Law Book Company) P Herzfeld and T Prince, Interpretation (2nd ed, 2020, Law Book Company) Category: Principal judgment Parties: Jin Lian Group Pty Ltd (in liq) (Plaintiff) ACapital Finance Pty Ltd (First Defendant) Australia Capital Investment Management Pty Ltd (Second Defendant) Representation: Counsel: C J Birch SC (Plaintiff) J Hutton (First Defendant) N Furlan (Second Defendant) (on 9 June 2021)