Franks v Equitiloan Securities Pty Limited [2007] NSWSC 812

New South Wales Supreme Court

CITATION : Franks v Equitiloan Securities Pty Limited [2007] NSWSC 812

HEARING DATE(S) : 6 July 2007 JURISDICTION : Equity Division

JUDGMENT OF : Brereton J

EX TEMPORE JUDGMENT DATE : 6 July 2007

DECISION : "Equities" do not include cross-claims exceeding quantum of assigned obligation that would entitle obligor to damages against assignee, but only to cross-claims to extent of reducing or extinguishing assignee's claim. Application for leave to amend cross-claim refused.

CATCHWORDS : PROPERTY – Choses in action – assignment – (NSW) Conveyancing Act s12 – assignment "subject to all equities" – equities include set-offs, cross-claims and counterclaims – whether such equities extend to cross-claims in excess of amount of assigned obligation so as to entitle obligor to judgment for damages against assignee

(CTH) Corporations Act 2001 s 444E LEGISLATION CITED : (NSW) Civil Procedure Act 2005 ss 58, 64 (NSW) Conveyancing Act 1919 ss 11, 12 (NSW) Limitation Act 1969 s 74

Government of Newfoundland v Newfoundland Railway Co (1888) 134 App Cass 199 Franks v Equitiloan Securities Pty Limited [2007] NSWSC 706 McDonnell & McGregor v East Limited (1936) 56 CLR 50 Mersey Steel & Iron Co v Naylor Benson & Co (1892) 9 QBD 648 CASES CITED : Mitchell v Purnell Motors Pty Limited (1960) 78 WN (NSW) 26 Provident Finance Corporation Pty Ltd v Hammond [1978] VR 312 Re Harry Simpson and Co Pty Ltd v the Companies Act (1964) 81 WN (NSW) 207 Roxburghe v Cox (1881) 17 Ch D 520 Young v Kitchin (1878) 3 Ex D 127 Meagher, Gummow & Lehane's Equity Doctrines & Remedies, 4th ed