Sutherland v Compton Lot Ten Pty Limited & Anor [2023] NSWSC 1472

Supreme Court New South Wales

Medium Neutral Citation: Sutherland v Compton Lot Ten Pty Limited & Anor [2023] NSWSC 1472 Hearing dates: 7, 8, 16 November 2023 Date of orders: 30 November 2023 Decision date: 30 November 2023 Jurisdiction: Equity - Corporations List Before: Black J Decision: The proceedings are dismissed and the plaintiff to pay the defendants' costs of the proceedings as agreed or as assessed. Catchwords: MORTGAGES AND SECURITIES — Mortgages — Duties, rights and remedies of mortgagee — Foreclosure — Where plaintiff alleges it has been assigned the security rights of a mortgagee over a share in a company — Where not established that lender or plaintiff as assignee has extinguished the defendant's equity of redemption by a foreclosure action — Whether an order can be made under s 175 of the Corporations Act 2001 (Cth) to correct the register of members to record the plaintiff as the legal and beneficial owner of the share. Legislation Cited: - Civil Procedure Act 2005 (NSW), s 94 - Conveyancing Act 1919 (NSW), ss 12, 38 - Corporations Act 2001 (Cth), ss 135, 169, 175, 180, 181, 203C, 1071B - Evidence Act 1995 (NSW), s 136 - Personal Property Securities Act 2009 (Cth) Cases Cited: - Adelaide Building Co Pty Ltd (in liq) v ABC Investments Pty Ltd (1990) 8 ACLC 445 - Alonso v SRS Investments (WA) Pty Ltd [2012] WASC 168 - Armagas Ltd v Mundogas SA [1985] 1 Ll R 1 - Bennell v Netlink Australia Pty Ltd (2002) 42 ACSR 680; [2002] NSWSC 822 - Elders Forestry Ltd v Bosi Security Services Ltd (2010) 242 FLR 360; 80 ACSR 122; [2010] SASC 223 - ET-China.com International Holdings Ltd v Cheung (2021) 388 ALR 128; [2021] NSWCA 24 - Harrold v Plenty [1901] 2 Ch 314 - Hoy Mobile Pty Ltd v Allphones Retail Pty Ltd (No 2) [2008] FCA 810 - Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 - Kuhl v Zurich Financial Services Ltd (2011) 243 CLR 361; [2011] HCA 11 - Mount Gilead Pty Ltd v Macarthur-Stanham (as executor of Estate of late Lee Macarthur-Onslow) [2023] NSWCA 37 - Musa v Alzreaiawi [2021] NSWCA 12 - Re Colorado Products Pty Ltd (in prov liq) (2014) 101 ACSR 233; [2014] NSWSC 789 - Re Lorie Najjar & Sons Pty Ltd (in liq) (2013) 94 ACSR 561; [2013] NSWSC 798 - Re Motasea Pty Ltd (2014) 97 ACSR 589; [2014] NSWSC 69 - Re SRD Property Pty Limited [2023] NSWSC 441 - United Rural Enterprises Pty Ltd v Lopmand Pty Ltd [2002] NSWSC 1178 - Varma v Varma [2010] NSWSC 786 - Watson v Foxman (1995) 49 NSWLR 315 Texts Cited: - A Finch, 'Security over Shares' (1995) 13 Company and Securities Law Journal 292 - E L J Tyler et al, Fisher & Lightwood's Law of Mortgage (LexisNexis, 3rd ed, 2014) - E Sykes & S Walker, The Law of Securities (Law Book Company, 5th ed, 1993) - G Bigmore & M Galvin, 'Foreclosure' (1992) 66 Law Institute Journal 56 - J D Heydon, Heydon on Contract (Thomson Reuters, 2019) -N Seddon, Seddon on Deeds (Federation Press, 2nd ed, 2022) Category: Principal judgment Parties: James Sutherland (Plaintiff) Compton Lot Ten Pty Ltd (First Defendant) Andrea Young (Second Defendant) Representation: Counsel: S Philips (Plaintiff) S Cominos/A Horne (First and Second Defendant)