Australian Financial Services and Leasing Pty Ltd v Hills Industries Limited & Ors [2011] NSWSC 267

Supreme Court New South Wales

Medium Neutral Citation: Australian Financial Services and Leasing Pty Ltd v Hills Industries Limited & Ors [2011] NSWSC 267 Hearing dates: 28/3/2011 - 31/3/2011, 1/4/2011 Decision date: 05 April 2011 Jurisdiction: Equity Division - Commercial List Before: Einstein J Decision: Verdict for the plaintiff as against the first defendant. Verdict for the second defendant as against the plaintiff. Verdict for the plaintiff as against the third defendant Catchwords: Equity Perpetration of a fraud by outside party Plaintiff carrying on finance business Fraudulent invoices Unjust enrichment Elements of unjust enrichment claim Which of a number of entities should bear the cost of the fraud Fraudulent invoices Alternative claims for knowing receipt of trust property Change in position Recognized elements of establishing change of position defence Contractual allocation of risk Barnes v Addy Cases Cited: Australia & New Zealand Banking Group Ltd v Westpac Banking Corp (1988) 164 CLR 662 Baden Delvaux & Lecuit v Socit Gnrale pour Favoriser le Dvelopment du Commerce et de l'Industrie en France SA [1993] 1 WLR 509 Barnes v Addy (1874) LR 9 Ch App 244 Bell Group Ltd (in liq) v Westpac Banking Corporation (No 9) [2008] WASC 239 Black v S Freedman & Company (1910) 12 CLR 105 Briginshaw v Briginshaw (1938) 60 CLR 336 Commercial Bank of Australia Ltd v Younis [1979] 1 NSWLR 444 David Securities Pty Ltd v Commonwealth Bank (1992) 175 CLR 353 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Hancock Family Memorial Foundation Limited v Porteous [1999] WASC 55 Kalls Enterprises Pty Ltd (In Liq) v Baloglow [2007] NSWCA 191 Lipkin Gorman v Karpnale Pty Ltd [1991] 2 AC 548 Lumbers v W Cook Builders Pty Ltd (in liquidation) (2008) 232 CLR 635 Magafas v Carantinos [2007] NSWSC 917 Malouf v MBF Australia Ltd [2007] NSWSC 1020 Menzies v Perkins [2000] NSWSC 40 Orix Australia Corporation Ltd v Moody Kiddell & Partners [2005] NSWSC 1209 Palmer v Blue Circle Southern Cement Ltd (1999) 48 NSWLR 318 Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221 Perpetual Trustees Australia Ltd v Heperu Pty Ltd [2009] NSWCA 84 Port of Brisbane Corporation v ANZ Securities Limited [2003] 2 Qd R 661 Robb Evans of Robb Evans & Associates v European Bank Ltd (2004) 61 NSWLR 75 Spangaro v Corporate Investment Australia Funds Management Ltd [2003] FCA 1025 Sweeney v Howard [2007] NSWSC 852 Wambo Coal Pty Ltd v Ariff [2007] NSWSC 589 Westdeutsche Landesbank Girozentrale v Islington London Borough Council [1996] AC 669 Texts Cited: Mason & Carter's Restitution Law in Australia, Keith Mason; J.W. Carter; G.J. Tolhurst; 2nd edition, 2008, LexisNexis Butterworths Category: Principal judgment Parties: Australian Financial Services and Leasing Pty Ltd (Plaintiff) Hills Industry Limited (First Defendant) Bosch Security Systems Pty Limited (Second Defendant) Jetobravo Pty Limited (Third Defendant) Representation: Counsel: Mr A Moses SC, Mr M Cleary (Plaintiff) Mr T Thawley (First Defendant) Mr L Gor (Second Defendant) Mr R Marshall (Third Defendant) Solicitors: Berry Buddle Wilkins Lawyers (Plaintiff) Cosoff Cudmore Knox (First Defendant) HWL Ebsworth (Second Defendant) Lee Hourigan & Brooks (Third Defendant) File Number(s): 2010/0133256