Harrington & Anor v Harrington Services Pty Ltd (In liq) & Ors [2003] NSWSC 29

New South Wales Supreme Court

CITATION : Harrington & Anor v Harrington Services Pty Ltd (In liq) & Ors [2003] NSWSC 29 HEARING DATE(S) : 26 November, 2002 and written submissions concluding 3 December 2002 JUDGMENT DATE : 11 February 2003 JURISDICTION: Equity Division JUDGMENT OF : Palmer J DECISION : Plaintiffs entitled to some, but not all, of relief claimed.

CATCHWORDS : AGED CARE ACT 1997 (Cth) - CONSTRUCTION - Sale of allocated places under Aged Care Act - accommodation bond balances outstanding as at date of transfer - effect of scheme established by s.16-11(b) - debts and liabilities of transferor expunged. WORDS AND PHRASES - "Responsibilities". CONSTRUCTIVE TRUST - Subsidy rights under Aged Care Act allocated to lessee of nursing home business in substitution for subsidy rights under National Health Act 1953 (Cth) - on expiration of lease lessee purports to deal with subsidy rights inconsistently with lessor's rights - constructive trust imposed. Aged Care Act, 1997 (Cth) - s.7-1, s.11-1, s.16-1, s.16-7, s.16-11, s.20-1, s.57-2, s.57-9, s.57-11, s.57-13, s.57-19, s.57-21 LEGISLATION CITED : Aged Care (Consequential Provisions) Act 1997 (Cth) National Health Act 1953 (Cth) - Aberdeen Town Council v Aberdeen University (1877) 2 App Cas 544 - Baumgartner v Baumgartner (1987) 164 CLR 137 CASES CITED : - BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR 266 - Keech v Sandford (1726) Cas t King 61 [25 ER 223] - Muschinski v Dodds (1985) 160 CLR 583 Kenneth Harrington - First Plaintiff PARTIES : Jacqueline Dorothy Harrington - Second Plaintiff Harrington Services Pty Ltd (In liq) - First Defendant Robert William Whitton and David John Frank Lombe - Second Defendants FILE NUMBER(S) : SC 1261/02 COUNSEL : Bruce Monotti - Plaintiffs J.S. Wheelhouse - Defendants SOLICITORS : Tress Cocks & Maddox - Plaintiffs Coudert Bros - Defendants