RIL Aviation HL 7740 and HL 7741 Pty Ltd v Alliance & Leicester plc & Ors [2010] NSWSC 1235

New South Wales Supreme Court

CITATION : RIL Aviation HL 7740 and HL 7741 Pty Ltd v Alliance & Leicester plc & Ors [2010] NSWSC 1235

HEARING DATE(S) : 22, 23, 26 and 27 July 2010; written submissions 3 August 2010

JUDGMENT DATE : 29 October 2010

JURISDICTION : Equity Division

JUDGMENT OF : Bergin CJ in Eq

DECISION : The plaintiff is obliged to pay the third defendant the Monthly Management Fee in the Schedule in the Management Agreement headed "Management Fee Letter". The defendants are not entitled to rely on the Notice of Default.

CATCHWORDS : COMMERCIAL CONTRACTS - complex suite of agreements in relation to financing of commercial aircraft - construction of clause for payment of manager - whether replacement manager is a "substitute" - whether events of default have occurred - whether plaintiff has attempted to deal with Secured Property

Agnew v Commissioner of Inland Revenue [2001] 2 AC 710 Commissioner of Stamp Duties (Queensland) v Jolliffe (1920) 28 CLR 178 International Air Transport Association v Ansett Australia Holdings Limited (2008) 234 CLR 151 CASES CITED : McCann v Switzerland Insurance Australia Limited (2000) 203 CLR 579 National Westminster Bank plc v Spectrum Plus Ltd [2005] 2 AC 680 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451 Pascoe v Boensch and Anor [2008] FCAFC 147; (2008) 250 ALR 24 Toll (FGCT) Pty Limited v Alphapharm Pty Ltd (2004) 219 CLR 165

RIL Aviation HL 7740 and HL 7741 Pty Limited (Plaintiff) Alliance & Leicester plc (First Defendant) Allco JS Pty Limited (Second Defendant) PARTIES : Ladbroke Management Pty Limited (Third Defendant)