Almona Pty Ltd v Parklea Corporation Pty Ltd [2021] NSWCA 171

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Almona Pty Ltd v Parklea Corporation Pty Ltd [2021] NSWCA 171 Hearing dates: 16–19 November 2020 Decision date: 11 August 2021 Before: Bathurst CJ at [1]; Basten JA at [80]; White JA at [275] Decision: (1) Dismiss the further amended notice of appeal of Almona Pty Ltd. (2) Order that the appellant pay the costs of each respondent to the appeal. (3) Dismiss the cross-appeal by Parklea Corporation Pty Ltd. (4) Order that Parklea Corporation pay the costs of Almona Pty Ltd of the cross-appeal. (5) Dismiss the summons filed by Secured Asset Portfolio III Ltd (in liq) seeking leave to cross-appeal from the costs order made by the trial judge. (6) Order that Secured Asset Portfolio III pay Almona's costs of the summons seeking leave to cross-appeal. Catchwords: MORTGAGES AND SECURITIES – mortgages – duties, rights and remedies of mortgagee – power of sale – mortgagee's duty to exercise power of sale in good faith – effect of contract of sale upon mortgagor's rights – whether attempt to refinance and discharge mortgage prior to transfer of title can prevent sale – where mortgagor's attempts to refinance accelerated the sale process MORTGAGES AND SECURITIES – mortgagee exercising right of sale – price higher if vacant possession given – requirement of vacant possession not communicated to occupant –damages awarded for failure to communicate occupation condition LAND LAW – Torrens title – exceptions to indefeasibility – fraud by mortgagee exercising power of sale – bid-rigging where alleged collaborator later acquired share in successful purchaser – whether collusion established LAND LAW – mortgages – mortgagee sale – where owner of the mortgagee financed the purchase and acquired option to control purchaser – honesty and independence of sale process – good faith exercise of power of sale – pre-existing relationship between parties acting on other projects – whether lack of independence in sale process indicative of fraud – burden of disproving fraud Legislation Cited: Conveyancing Act 1919 (NSW), ss 109, 111A Corporations Act 2001 (Cth) s 420A Real Property Act 1900 (NSW), ss 42, 43, 45, 56, 57, 59, 118 Legal Profession Uniform Conduct (Barristers) Rules 2015, r 65 Cases Cited: Almona Pty Ltd v Parklea Corporation Pty Ltd (No 4) [2020] NSWSC 553 Assets Co Ltd v Mere Roihi [1905] AC 176 Australia and New Zealand Banking Group Ltd v Bangadilly Pastoral Co Pty Ltd (1978) 139 CLR 195; [1978] HCA 21 Banque Commerciale S.A., en Liquidation v Akhil Holding Ltd (1990) 169 CLR 279; [1990] HCA 279 Barns v Queensland National Bank Limited (1906) 3 CLR 925; [1906] HCA 26 Belton v Bass, Ratcliffe and Gretton Ltd [1922] 2 Ch 449 Butler v Fairclough (1917) 23 CLR 78; [1917] HCA 9 Cassegrain v Gerard Cassegrain & Co Pty Ltd (2015) 254 CLR 425; [2015] HCA 2 Chia v Rennie (1997) 8 BPR 15,601 Commonwealth Bank of Australia v Hadfield (2001) 53 NSWLR 614; [2001] NSWCA 440 Davey v Durrant (1857) 1 De G & J 535; (1858) 44 ER 1086 Earl of Chesterfield v Janssen (1751) 2 Ves Sen 125; 28 ER 82 Farrar v Farrars Ltd (1888) 40 Ch D 395 Forsyth v Blundell (1973) 129 CLR 477; [1973] HCA 20 Hawkesbury Valley Developments Pty Ltd v Custom Credit Corporations Ltd (1994) 8 BPR 15,581 Kennedy v De Trafford [1897] AC 180 Krakowski v Eurolynx Properties Ltd (1995) 183 CLR 563; [1995] HCA 68 Latec Investments Ltd v Hotel Terrigal Pty Ltd (In liq) (1965) 113 CLR 265; [1965] HCA 17 Nash v Eads (1880) 25 Sol Jo 95 National & Provincial Building Society v Ahmed (1995) 2 EGLR 127 Pendlebury v Colonial Mutual Life Assurance Society Ltd (1912) 13 CLR 676; [1912] HCA 9 Perri v Coolangatta Investments Pty Ltd (1982) 149 CLR 537; [1982] HCA 29 Potts v Miller (1940) 64 CLR 282; [1940] HCA 43 Property & Bloodstock Ltd v Emerton (1968) Ch 94 Provident Capital Ltd v Printy [2008] NSWCA 131; (2008) 13 BPR 25 Robertson v Norris (1858) 1 Giff 421; 65 ER 983 Sahab Holdings Pty Ltd v Registrar General (No 2) [2012] NSWCA 42; (2012) 16 BPR 30 Sewell v Agricultural Bank of Western Australia (1930) 44 CLR 104; [1930] HCA 29 Tse Kwong Lam v Wong Chit Sen [1983] 1 WLR 1349 Waimiha Sawmilling Co Ltd v Waione Timber Co Ltd [1926] AC 101 Waring (Lord) v London and Manchester Assurance Co Ltd (1935) Ch 310 Warner v Jacob (1881) 20 Ch D 220 Texts Cited: Croft and Hay, The Mortgagee's Power of Sale (4th ed, LexisNexis, 2019) J D Heydon, M J Leeming and P J Turner, Meagher, Gummow and Lehane's Equity – Doctrines and Remedies (5th ed, LexisNexis, 2015) Waters, The Constructive Trust, University of London (1964) Category: Principal judgment Parties: Almona Pty Ltd (Appellant/First Cross-Respondent) Parklea Corporation Pty Ltd (First Respondent/Cross-Appellant) P T Ltd (Second Respondent/Second Cross-Respondent) Secured Asset Portfolio III Ltd (In liq) (Third Respondent) Representation: Counsel: D Williams SC / N Riordan (Appellant/First Cross-Respondent) K Andronos SC / S Keizer (First Respondent/Cross-Appellant) M Izzo SC/ J Burnett (Second Respondent/Second Cross-Respondent) N Hutley SC / E Hyde / G Keesing (Third Respondent)