Jeogla v ANZ [1999] NSWSC 563

Reported Decision : [1999] 150 FLR 359 [2001] ANZ ConvR 298

New South Wales Supreme Court CITATION : Jeogla v ANZ [1999] NSWSC 563 CURRENT JURISDICTION : Equity Division - Commercial List FILE NUMBER(S) : 50129/98 HEARING DATE(S) : 5,6,10,11,12,13 and 14 May 1999 JUDGMENT DATE : 11 June 1999

Jeogla Pty Limited (First Plaintiff) Richard Bruce Arundell Wright (Second Plaintiff) PARTIES : Barbara Ann Wright (Third Plaintiff) Bald Hills Pty Limited (Fourth Plaintiff) Australia and New Zealand Banking Group Limited (First Defendant) Keith William Skinner (Second Defendant) JUDGMENT OF : Einstein J

COUNSEL : N.A. Cotman SC with R.A. Parsons (Plaintiffs) P.M. Jacobson QC with R.G. Kaye (Defendants) SOLICITORS : Kenny & Associates by their Sydney agent Nash O'Neill Tomko Lawyers (Plaintiffs) Norton Smith & Co. (Defendants) CATCHWORDS : Mortgagor and mortgagee - Mortgagee exercising power of sale - Receiver appointed - Controllers duties in exercising powers of sale - Sale of real property and livestock - What is 'market value' in a mortgagees power of sale - Companies - Receivers and managers - Duties and obligations of controllers - Duties and responsibilities to company - Corporations Law s420A imposes a higher standard of duty to that previously in place on a controller when selling property of a corporation - Whether, and to what extent, a receiver may defer to the advice of an expert in valuing and marketing property for sale - Failure of the receiver to value the property at the market price - Failure of the receiver to appropriately advertise and market the sale of the property - Failure to stimulate competition - Failure of the receiver to approach the correct market for the sale of the property - Subsequent failure of the receiver to realise the market value of the property. Corporation Law s420A - Construction Bankruptcy Legislation Amendment Act 1996 (Cth), ACTS CITED : Bankruptcy Act 1966 (Cth). Building Societies Act 1939 (UK), Property Act 1974 (Qld), Transfer of Land Act 1958 (Vic) Australia and New Zealand Banking Group Ltd v Carnegie (Unreported, Supreme Court of Victoria, 16 June 1987, Crockett J). Barns v Queensland National Bank Ltd & Anor (1906) 3 CLR 925 Commercial and General Acceptance Ltd v Nixon & Anor (1981) 152 CLR 491 Cuckmere Brick Co Ltd v Mutual Finance Ltd [1971] 1 Ch 949 Downsview Nominees Ltd & Anor v First City Corp Ltd & Anor (1993) 11 ACLC 3,101; [1993] 2 WLR 86 Emerson v Custom Credit Corporation Ltd (1992) Q ConvR 54-431 CASES CITED : Expo International Pty Ltd v Chant [1979] 2 NSWLR 820 Goldcel Nominees Pty Ltd (Provisional Liquidator Appointed) v Network Finance Ltd & Ors [1983] 2 VR 257 Hawkesbury Valley Developments Pty Ltd & Anor v Custom Credit Corporation Ltd & Ors (Unreported, Supreme Court of New South Wales, 9 December 1994, McLelland J) In re B Johnson & Co (Builders) Ltd [1955] Ch 634 Reliance Permanent Building Society v Harwood-Stamper [1944] 1 Ch 362 Spencer v The Commonwealth (1907) 5 CLR 418 Standard Chartered Bank Ltd v Walker & Anor [1982] 1 WLR 1410 Tse Kwong Lam v Wong Chitt Sen [1983] 3 All ER 54 DECISION : Short Minutes to be brought in.