Labraga v Pomfret; Highland v Labraga [2005] NSWSC 973

New South Wales Supreme Court

CITATION : Labraga v Pomfret; Highland v Labraga [2005] NSWSC 973

HEARING DATE(S) : 13, 14 and 15 July 2005 [then written submissions]

JUDGMENT DATE : 29 September 2005

JURISDICTION : Equity Division

JUDGMENT OF : Young CJ in Eq

DECISION : 2063/05: Plaintiff not entitled to equitable charge. Order that second defendant be wound up; 2466/05: Grant of probate revoked; first plaintiff appointed administratrix cta.

CATCHWORDS : CORPORATIONS [219]- Winding up- Small proprietary company- Provisional liquidator appointed- Breakdown in relationship between directors- Mistrust between directors sufficient to wind up on just and equitable ground. EQUITY [32]- Charge- Specific performance of agreement to create charge- Director of company loaned personal funds to company- Director asserted that loan secured by equitable fixed and floating charge over company's mortgage book- Whether conversations between directors created agreement- Whether mortgage book too variable an asset to attract fixed charge- Discussion of whether specific performance may be granted where content of purported agreement too vague. SUCCESSION [104]- Revocation of probate- Executors were business partners of testator- Executors not co-operating- Estate not fully administered- Testator taken to consent to any conflict arising because of appointment of business partners as executors- Testator's choice of executors not lightly set aside- Borderline case- Revocation granted where one of two executors removed and no real opposition to revocation or choice of new administrator.

LEGISLATION CITED : Corporations Act 2001 (Cth) ss 266, 461(1)(k), 513A

Bridge Wholesale Acceptance Corporation (Australia) Ltd v Burnard (1992) 27 NSWLR 415 Buxton v Lister (1746) 3 Atk 383; 26 ER 1020 Ebrahimi v Westbourne Galleries Ltd [1973] AC 360 Hordern v Hordern [1910] AC 465 Jackson v Richards [2005] NSWSC 630 Joseph v National Magazine Co Ltd [1959] Ch 14 Mavrideros v Mack (1998) 45 NSWLR 80 Morgan v Macrae [2001] NSWSC 1017 National Provincial & Union Bank of England v Charnley [1924] 1 KB 431 CASES CITED : Palmer v Carey [1926] AC 703 Rodick v Gandell (1852) 1 De GM & G 763; 42 ER 749 Swiss Bank Corporation v Lloyds Bank Ltd [1982] AC 584 Thomas v Mackay Investments Pty Ltd (1996) 22 ACSR 294 Tito v Waddell (No 2) [1977] Ch 106 Vyse v Foster (1874) LR 7 HL 318 Wight v Haberdan Pty Ltd [1984] 2 NSWLR 280 Wilson v Furness Railway Co (1869) LR 9 Eq 28 Wilson v Northampton & Banbury Junction Railway Co (1874) 9 Ch App 279