Re French Caledonia Travel [2003] NSWSC 1008

48 ACSR 97 Reported Decision : 59 NSWLR 361 (2004) 22 ACLC 498

New South Wales Supreme Court

CITATION : Re French Caledonia Travel [2003] NSWSC 1008 HEARING DATE(S) : 27 August 2003 JUDGMENT DATE : 24 November 2003 JURISDICTION: Equity JUDGMENT OF : Campbell J DECISION : Clayton's Case not applicable in distribution of trust monies. In particular circumstances of this case, liquidator justified in pari passu distribution amongst claimants on trust fund

CATCHWORDS : TRUSTS - remedies of beneficiaries - mixing of money held on trust for several beneficiaries in bank account - insufficiency of account to meet claims on it - how insufficiency should be borne - whether Clayton's Case applicable to decide proprietary interests in money remaining in account - CORPORATIONS - winding up - liquidator of company which held money of several beneficiaries in trust account - liquidator's responsibility concerning distribution - whether Clayton's Case applies - BANKING AND FINANCIAL INSTITUTIONS - banker and customer and business of banking generally - present role of Clayton's Case - CORPORATIONS - winding up - liquidator's application for directions - application concerning one question in which representative of affected class appointed, and concerning other questions where no representative of affected persons appointed - who bound by decision - TRUSTS - money paid into trust account - whether trust created - PRECEDENT - effect of first instance decision altered on appeal - PRECEDENT - decisions of English Court of Appeal - PRECEDENT - effect of judge's decision about legal rights arising in a factual situation which he has held does not exist - CORPORATIONS - winding up - liquidator of company which is trustee of assets, and has other assets - when liquidator's costs paid from assets subject of security - when liquidator's costs payable from trust assets Companies Act LEGISLATION CITED : Companies Act 1962 (SA) Corporations Act 2001 (Cth) 13 Coromandel Place Pty Ltd v C L Custodians Pty Ltd (in liq) (1999) 30 ACSR 377 Adamopoulos v Olympic Airways SA (1991) 25 NSWLR 75 Australia and New Zealand Banking Group Ltd v Westpac Banking Corporation (1988) 164 CLR 662 Australian Securities and Investments Commission v Enterprise Solutions 2000 Pty Ltd [2001] QSC 082 Chesterman J, 27 March 2001, unreported Australian Securities and Investment Commission v Nelson [2003] NSWSC 129; (2003) 44 ACSR 719 Australian Securities and Investments Commission v Rowena Nominees Pty Ltd [2003] WASC 112; (2003) 45 ACSR 424 Australian Securities Commission v Melbourne Asset Management Nominees Pty Ltd (receiver and manager appointed) (1994) 49 FCR 334 Associated Alloys Pty Limited v ACN 001 452 106 Pty Limited (in liquidation) and Anor [2000] HCA 25; (2000) 202 CLR 588 Barlow Clowes International Ltd (in liq) v Vaughan [1992] 4 All ER 22 Behrens v Bertram Mills Circus Ltd [1957] 2 QB 1 In Re Berkeley Applegate (Investment Consultants) Ltd (in liquidation); Harris v Conway [1989] 1 Ch 32 In Re Birkbeck Permanent Benefit Building Society [1912] 2 Ch 183 Bradford Old Bank Ltd v Sutcliffe [1918] 2 KB 833 Brady v Stapleton (1952) 88 CLR 322 Bristol-Myers Squibb Co v F H Faulding & Co Ltd (2000) 170 ALR 439 In Re British Red Cross Balkan Fund; British Red Cross Society v Johnson [1914] 2 Ch 419 Brown v Adams (1869) LR 4 Ch App 764 Buckley v Gross (1863) 3 B&S 566 Burt v Barry & Roberts Ltd [1956] QSR 207 Clayton's Case; Devaynes v Noble (1816) 1 Mer 572; 35 ER 781 Commissioner of Stamp Duties (Q) v Jolliffe (1920) 28 CLR 178 Cook v Cook (1986) 162 CLR 376 Cory Brothers & Company Limited v The Owners of the Turkish Steamship Mecca [1897] AC 286 Creak v James Moore & Sons Proprietary Limited (1912) 15 CLR 426 Deeley v Lloyds Bank Limited [1912] AC 756 In Re Diplock; Diplock v Wintle [1948] 1 Ch 465 Re Eastern Capital Futures Ltd (in liquidation) [1989] BCLC 371 Re Farmer [1939] Ch 573 Federal Commissioner of Taxation v St Helen's Farm (ACT) Pty Ltd (1981) 146 CLR 336 Federation Insurance Limited v Wasson (1987) 163 CLR 303 Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour Ltd [1943] AC 32 Firth v Centrelink [2002] NSWSC 564; (2002) 55 NSWLR 451 Foskett v McKeown [2001] 1 AC 102 French Caledonia Travel Service Pty Ltd (in liquidation) - Application of Roderick Mackay Sutherland [2002] NSWSC 641; (2002) 42 ACSR 524; (2002) 20 ACLC 1486 Re G B Nathan & Co Pty Ltd (in liq) (1991) 24 NSWLR 674 Garcia v National Australia Bank Ltd (1998) 194 CLR 395 Re Global Finance Group Pty Ltd (in liq) [2002] WASC 63; (2002) 26 WAR 385 Re Greater West Insurance Brokers Pty Ltd [2001] NSWSC 825; (2001) 39 ACSR 301 Grime Carter & Co Pty Ltd v Whytes Furniture (Dubbo) Pty Ltd [1983] 1 NSWLR 158 In Re Guardian Permanent Benefit Building Society (1882) 23 ChD 440 Hagan v Waterhouse (1991) 34 NSWLR 308 In Re Hallett's Estate; Knatchbull v Hallett (1879) 13 Ch D 696 Hancock v Smith (1889) 41 ChD 456 Hepburn v TCN Channel Nine Pty Ltd [1984] 1 NSWLR 386 Re Hobourn Aero Components Ltd's Air-Raid Distress Fund [1946] 1 Ch 86 Re Hobourn Aero Components Ltd's Air-Raid Distress Fund [1946] 1 Ch 194 Hodges & Hurley v Kovacs Estate Agency Ltd [1961] WAR 19 Hopkinson v Rolt (1861) 9 HL Cas 514 Jacobs v London County Council [1950] AC 361 Re James R Rutherford & Sons Ltd [1964] 1 WLR 1211 CASES CITED : James Roscoe (Bolton) Limited v Winder [1915] 1 Ch 62 Joachimson v Swiss Bank Corporation [1921] 3 KB 110 Re Jones (Deceased); Ex parte Mayne (1953) 16 ABC 169 Jones v Bartlett (2000) 205 CLR 166 In Re Joscelyne; Allen's Plaster Products Pty Ltd v Prudential Assurance Co Ltd [1963] Tas SR 4 Kauter v Hilton (1953) 90 CLR 86 In Re Kayford Limited (in liquidation) [1975] 1 WLR 279 Keefe v Law Society of New South Wales (1998) 44 NSWLR 451 In Re Laughton [1962] Tas SR 300 Law Society of Upper Canada v Toronto-Dominion Bank (1998) 169 DLR (4th) 353 Lippmann Gorman v Karpnale Ltd [1991] 2 AC 548 London Jewellers Ltd v Attenborough [1934] 2 KB 206 In Re Marine Mansions Company (1867) LR 4 Eq 601 Re Martin [1953] QSR 37 Moodemere Pty Ltd (in liquidation) v Waters [1988] VR 215 Murray v Scott (1884) 9 App Cas 519 Mutton v Peat [1899] 2 Ch 556 Mutton v Peat [1900] 2 Ch 79 Natwest Markets Australia Ltd v Mannix (1995) 7 BPR 14,668 In Re Oatway; Hertslet v Oatway [1903] 2 Ch 356 Re Ontario Securities Commission and Greymac Credit Corp (1986) 30 DLR (4th) 1 Re Ontario Securities Commission and Greymac Credit Corporation (1988) 52 DLR (4th) 767 In Re Oriental Hotels Company; Perry v Oriental Hotels Company (1871) LR 12 Eq 126 Osborne v Rowlett (1880) 13 ChD 774 Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221 Parr's Banking Company Ltd v Yates [1898] 2 QB 460 Pennell v Deffell (1853) 4 DeGM&G 372; 43 ER 551 In Re Regent's Canal Ironworks Company; Ex parte Grissell (1875) 3 ChD 411 Re Registered Securities Ltd [1991] 1 NZLR 545 Russell-Cooke Trust Co v Prentis [2002] EWHC 2227 (Ch); [2003] 2 All ER 478 Scott v Scott (1963) 109 CLR 649 Sharah v Healey [1982] 2 NSWLR 223 In Re Sherry; London and County Banking Company v Terry (1883) 25 Ch D 692 Shirlaw v Taylor (1991) 31 FCR 222 Shoreline Currencies (Australia) Pty Ltd (in liquidation) and the Companies (New South Wales) Code (Kearney J, 14 October 1988, unreported) Sibbles v Highfern Proprietary Limited (1987) 164 CLR 214 Sinclair v Brougham [1914] AC 398 Spence v Union Marine Insurance Co Ltd (1868) LR 3 CP 427 In Re Stenning; Wood v Stenning [1895] 2 Ch 433 Stephens Travel Service International Pty Ltd (receivers and managers appointed) v QANTAS Airways Ltd (1988) 13 NSWLR 331 Re Stillman & Wilson (1950) 15 ABC 68 In Re Suco Gold Pty Ltd (in liquidation) (1983) 33 SASR 99 Re Thomas Mortimer Limited [1965] Ch 186 In The Trusts of the Abbott Fund; Smith v Abbott [1900] 2 Ch 326 Re Universal Distributing Co Ltd (1933) 48 CLR 171 Re Walter J Schmidt & Co 298F 314 (1923) Westdeutsche Landesbank Girozentrale v Islington London Borough Council [1996] AC 669 Re Wilson [1940] Ch 966 Windsor Mortgage Nominees Pty Ltd (as trustee) v Raymond Griffith Cardwell (1979) ACLC 40-540 Woolwich Equitable Building Society v Inland Revenue Commissioners [1993] AC 70 Re Yeovil Glove Co Ltd [1962] 3 All ER 400 Re Yeovil Glove Co Ltd [1965] Ch 148 PARTIES : Roderick Mackay Sutherland - First Applicant French Caledonia Travel Service Pty Limited (in liquidation) - Second Applicant FILE NUMBER(S) : SC 3173/02 COUNSEL : Golledge, solicitor - First Applicant A Lo Surdo - QT Travel Pty Limited SOLICITORS : The Argyle Partnership - First Applicant Norton White - QT Travel Pty Limited