Ronald John Dean-Willcocks & Anor v Nothintoohard Pty Limited (In Liquidation) & Ors [2006] NSWCA 311

Reported Decision : (2007) 25 ACLC 109

New South Wales Court of Appeal

CITATION: Ronald John Dean-Willcocks & Anor v Nothintoohard Pty Limited (In Liquidation) & Ors [2006] NSWCA 311

HEARING DATE(S): 7 June 2006

JUDGMENT DATE: 10 November 2006

JUDGMENT OF: Spigelman CJ at 1; Beazley JA at 12; McColl JA at 118

DECISION: Appeal dismissed with costs.

CATCHWORDS: EQUITY – equitable lien – out of court receivers appointed – realisation of assets – Real Property Act land – exercise of Mortgagee's power of sale – whether receiver entitled to equitable lien over fund for costs incurred in attempted realisation - EQUITY – equitable lien – priority – whether equitable lien takes priority over legal interest - EQUITY – incontrovertible benefit – whether incontrovertible benefit accepted unconscientiously - RECEIVER AND MANAGER – recovery of costs incurred in the care, preservation and realisation of assets – whether an equitable lien or charge over realisation fund where realisation effected by party other than receiver – salvage – whether costs incurred protected, preserved or enhanced the value of the property so as to provide incontrovertible benefit

LEGISLATION CITED: Real Property Act 1900 (NSW) s 57(2)(b)

Batten v Wedgwood Coal and Iron Company (1884) 28 Ch 317 Choudhri v Palta [1994] 1 BCLC 184; [1992] BCLC 787 Commonwealth Bank of Australia v Butterell (1994) 35 NSWLR 64 Dean-Willcocks v Nothintoohard Pty Ltd [2005] NSWSC 357 Hewett v Court (1983) 149 CLR 639 Meagher, Heydon and Leeming, Meagher, Gummow & Lehane's 'Equity: Doctrines and Remedies' (2002, 4th Ed) Monks v Poynice Pty Limited (1987) 8 NSWLR 662 Moodemere Pty Limited (In liq) v Waters & Anor [1988] VR 215 Nicobar Pty Ltd v Abrokiss & Ors [2003] NSWSC 447; (2003) 48 ACSR 259 CASES CITED: O'Donovan, Company Receivers and Managers (1981) Pattison v Lockwood (unreported, FCA, 30 April 1998) Pomeroy's Equity Jurisprudence, 5th ed (Symons) (1941) Re Berkeley Applegate (Investment Consultants) Ltd; Harris v Conway [1989] Ch 32 Re Universal Distributing Co Ltd (In liq) (1933) 48 CLR 171 Shawyer v Amberday (In liq) (2001) 10 BPR 18,869; [2001] NSWSC 399 Shirlaw v Taylor (1991) 31 FCR 222 Tanwar Enterprises Pty Ltd v Cauchi (2003) 217 CLR 315 Weston v Carling Construction Pty Ltd (in prov liq) (2000) 175 ALR 202; [2000] NSWSC 693 Westpac Banking Corp v ITS Taxation (2004) 183 FLR 273; [2004] NSWSC 50 Young v ACN 081 162 512 (2005) ACSR 629; [2005] NSWSC 139