Bofinger v Rekley Pty Ltd [2007] NSWSC 1138

New South Wales Supreme Court

CITATION : Bofinger v Rekley Pty Ltd [2007] NSWSC 1138

HEARING DATE(S) : 14/9/07

JUDGMENT DATE : 15 October 2007

JURISDICTION : Equity Division

JUDGMENT OF : Young CJ in Eq

DECISION : Sums of money and securities in question not held in trust by second defendant for plaintiffs.

CATCHWORDS : GUARANTEE & INDEMNITY [33]- Rights of surety- Company gives three mortgages- Surety provides guarantees- Surety sells own property and pays proceeds to first mortgagee- First mortgage later discharged- First mortgagee pays surplus and provides title deeds to second mortgagee- Surety claims these as held on trust for surety because of operation of subrogation- Held no subrogation as no unconscionability in second mortgagee retaining surplus and title deeds- Quaere in any event whether there would have been any trust.

LEGISLATION CITED : Law Reform (Miscellaneous Provisions) Act 1965, s 3

Aldrich v Cooper (1803) 8 Ves 382; 32 ER 402 Allen v De Lisle (1856) 3 Jur NS 928 Austin v Royal (Giles CJ Comm D, 14 May 1998, BC 9801770) Australasian Conference Association Ltd v Mainline Constructions Pty Ltd (1978) 141 CLR 335 Aylwin v Witty (1861) 30 LJ Ch 860 Dawson v Bank of Whitehaven (1877) 4 Ch D 639 CASES CITED : Drew v Lockett (1863) 32 Beav 499; 55 ER 196 Highland v Exception Holdings Pty Ltd (2006) 60 ACSR 223 Lloyd's Bank NZA Ltd v National Safety Council of Australia Victorian Division (1993) 115 ALR 93 McColl's Wholesale Pty Ltd v State Bank of New South Wales [1984] 3 NSWLR 365 Muschinski v Dodds (1985) 160 CLR 583 Quarrell v Beckford (1816) 1 Madd 269; 56 ER 100 Silk v Eyre (1875) 9 IR Eq 393