Securities Exchanges Guarantee Corporation Ltd v Aird & Ors [2001] NSWSC 379

Reported Decision : (2001) 38 ACSR 185 (2001) 19 ACLC 1225

New South Wales Supreme Court

CITATION : Securities Exchanges Guarantee Corporation Ltd v Aird & Ors [2001] NSWSC 379 revised - 7/06/2001 CURRENT JURISDICTION: Equity Division Commercial List FILE NUMBER(S) : SC 50066/2000 HEARING DATE(S) : 23 and 24 April 2001 JUDGMENT DATE : 30 May 2001

PARTIES : Securities Exchanges Guarantee Corporation Limited (ACN 008 626 793 (Plaintiff) Stephanie June Aird & Ors (Defendants) JUDGMENT OF : Bergin J

COUNSEL : A Robertson SC/F Gleeson (Plaintiff) FM Douglas QC/PH Solomon (Defendants) SOLICITORS : Phillips Fox (Plaintiff) Allen Allen & Hemsley (Defendants) CATCHWORDS : [CORPORATIONS LAW] - Policy of the establishment and structure of the National Guarantee Fund under Part 7.10 of the Corporations Law - Entitlement to make a claim on the Fund pursuant to s 957 of the Corporations Law - Statutory obligations of the Board of the Securities Exchange Guarantee Corporation (SEGC) pursuant to Divisions 7 & 9 of Part 7.10 of the Corporations Law in considering whether it is satisfied that a claimant is entitled to make a claim on the Fund pursuant to s 957 - Whether payments to a claimant by a third party may be taken into account by the Board in such consideration - SEGC's statutory right of subrogation pursuant to s 980(2) of the Corporations Law - Whether claimant's contractual assignment of rights to a third party precludes an entitlement to make a claim under s 957. [DECLARATORY ORDERS] - Whether application for declaration should be entertained prior to the Board of the SEGC considering the defendants' entitlement to make claims pursuant to s 957 of the Corporations Law. Australian Stock Exchange and National Guarantee Fund Act 1987 (Cth) Companies Act 1981 (Cth) Cooperative Scheme Legislation Amendment Act 1989 (Cth) Corporations Law LEGISLATION CITED : Securities Industry Act 1970 (NSW) Securities Industry Act 1975 (NSW) Securities Industry Act 1980 (Cth) Securities Industry (Application of Laws) Act 1981 (NSW) Securities Industry (New South Wales) Code Ankar Pty Ltd v National Westminister Finance (Australia) Ltd (1987) 162 CLR 549 Austin v Royal (1999) 47 NSWLR 27 Banque Financiere de la Cite v Parc (Battersea) Ltd [1999] 1 AC 221 Barclays Bank Ltd v TOSG Trust Fund Ltd [1984] 1 AC 626 Bass & Anor v Permanent Trustee Company Limited & Ors (1999) 198 CLR 334 Bond v Hongkong Bank of Australia Ltd & Ors (1991) 25 NSWLR 286 Commonwealth v Hazeldell Ltd (1918) 25 CLR 552 Farrow Finance Company Ltd (In liquidation) v A.N.Z. Executors & Trustee Co Ltd & Ors [1998] 1 VR 50 Law Society of New South Wales v Bruce (1996) 40 NSWLR 77 Midland Montagu Australia Ltd & Anor v Harkness (1994) 35 NSWLR 150 Monroe Schneider Associates Inc v No 1 Raberem Pty Ltd (1991) 33 FCR 1 National Insurance Co of New Zealand v Espagne (1961) 105 CLR 569 CASES CITED : National Mutual Property Services (Australia) Pty Ltd & Ors v Citibank Savings Ltd & Ors (1995) 132 ALR 514 Redding v Lee (1982) 151 CLR 117 Registrar General v Gill & Anor (16 August 1994, Gleeson CJ, Mahoney & Priestley JJA) Re Ledingham v Di Natale (1973) 31 DLR (3d) 18 State Government Insurance Office (Qld) v Brisbane Stevedoring Pty Ltd (1969) 123 CLR 228 The Commonwealth v Sterling Nicholas Duty Free Pty Ltd (1972) 126 CLR 297 Wik Peoples v Queensland (1996) 187 CLR 1 [J O'Donovan & J Phillips The Modern Contract of Guarantee 3rd Ed. LBC] [SR Derham Set-Off 2nd Ed. Oxford] [JG Fleming (1974) Vol LII The Canadian Bar Review 103] [JD Heydon, PL Loughlan (1997) Cases & Materials on Equity & Trusts 5th Ed Butterworths] [RW McInnes (1973) Vol LI The Canadian Bar Review 658] [C Mitchell (1994) The Law of Subrogation. Oxford] DECISION : Application refused.