THC Holding Pty Ltd v CMA Recycling Pty Ltd [2014] NSWSC 1136

Supreme Court New South Wales

Medium Neutral Citation: THC Holding Pty Ltd v CMA Recycling Pty Ltd [2014] NSWSC 1136 Hearing dates: 28-30 July 2014; written submissions 6 & 12 August 2014 Decision date: 21 August 2014 Jurisdiction: Equity Division - Commercial List Before: Stevenson J Decision: Title in goods passed to plaintiff; plaintiff entitled to relief following disposition of goods by administrators Catchwords: CONTRACT - proper law of the contract - whether the proper law of the contract is New South Wales or Western Australia; SALE OF GOODS - contract for sale of unascertained goods - whether goods ascertained - whether title to property had passed from defendant to plaintiff - whether commingling affects ascertainment - whether property acquired through share in bulk pursuant to s 25A Sale of Goods Act 1923 (NSW); SECURITIES - personal property securities - Personal Property Securities Act 2009 (Cth) - whether property a "security interest" pursuant to s 12; CORPORATIONS - Corporations Act 2001 (Cth) ss 442C, 447E and 1324(10) - whether administrators' disposition of property was in contravention of s 442C - whether private law claim for damages available for contravention of s 442C - whether plaintiff has right to damages under s 1324(10) for contravention of s 442C - whether plaintiff should be permitted to rely on remedy under s 447E sought only in final submissions; EQUITY - fiduciary duties - whether vendor bailee owed a fiduciary duty to purchaser bailor - whether administrators knowingly assisted company in breach of fiduciary duty Legislation Cited: Corporations Act 2001 (Cth) Personal Property Securities Act 2009 (Cth) Sale of Goods Act 1923 Sales of Goods Act 1895 (WA) Sale of Goods Act 1979 (UK) Sale of Goods and Warehousemen's Liens Amendment (Bulk Goods) Bill 2006 Cases Cited: Artistic Builders Pty Ltd v Elliot & Tuthill (Mortgages) Pty Ltd [2002] NSWSC 16 Bank Voor Handel En Scheepvaart N.V. v Slatford [1953] 1 QB 248 Barnes v Addy (1874) LR9ChApp 244 Barrymores Pty Ltd v Harris Scarfe Ltd (Administrators Appointed) (Receivers & Managers Appointed) [2001] WASC 210; 25 WAR 187 Bonython v Commonwealth of Australia (1950) 81 CLR 486; AC 201 Chapman Bros v Verco Bros & Co Ltd (1933) 49 CLR 306 Dungowan Manly Pty Ltd v McLaughlin [2012] NSWCA 180; 90 ACSR 62 Elders Trustee and Executor Co Pty Ltd v E G Reeves Pty Ltd (1987) 78 ALR Electricity Generation Corporation v Woodside Energy Limited [2014] HCA 7; 88 ALJR 447 Executor Trustee Australia Ltd v Deloitte Haskins & Sells [1996] SASC 5874; 135 FLR 314 Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; 230 CLR 89 Florgale Uniforms Pty Ltd (Receiver and Manager Appointed) (in liq) v Orders [2004] VSC 65; 11 VR 54 GE Capital Australia v Davis [2002] NSWSC 1146; 180 FLR 250 Gillogly v Iama Agribusiness Pty Ltd [2002] NSWCA 251 Grimaldi v Chameleon Mining NL (No. 2) [2012] FCAFC 6 In the matter of Colorado Products Pty Limited (in prov liq) [2013] NSWSC 1613 In the matter of Colorado Products Pty Ltd (in prov liq) [2014] NSWSC 789 In the matter of Hallett's Estate (1880) 13 Ch D 696 Hill v Reglon Pty Ltd [2007] NSWCA 295 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Jovanovic v Commonwealth Bank of Australia [2004] SASC 61; 87 SASR 570 Karlshamns Oljefabriker v Eastport Navigation Corp; The Elafi [1981] 2 Lloyd's Rep. 679; [1982] 1 All ER 208 McCracken v Phoenix Constructions (QLD) Pty Ltd [2012] QCA 129; [2013] 2 Qd R 27 Osborne Computer Corporation Pty Ltd v Riddell (1995) 17 ACSR 606 Permanent Trustee Australia Ltd v Perpetual Trustee Co Ltd (1994) 15 ACSR 722 Phoenix Constructions (Queensland) Pty Ltd v Coastline Constructions (Aust) Pty Ltd [2011] QSC 167; 84 ACSR Re Bradford Roofing Industries Pty Ltd (in liq) & Companies Act [1966] 1 NSWR 674 Sandeman & Sons v Tyzack & Branfoot Steamship Co Ltd [1913] AC 680 Sovar v Henry Lane Pty Ltd (1967) 116 CLR 397 Tisand Pty Ltd v The Owners of the Ship MV "Cape Moreton" (ex "Freya") [2005] FCAFC 68; 143 FCR 43 Ultimate Property Group Pty Ltd v Lord [2004] NSWSC 114; 60 NSWLR 646 United States Surgical Corp v Hospital Products International Pty Ltd [1983] 2 NSWLR 157 Waterhouse v Waterhouse (1999) 46 NSWLR 449 Texts Cited: Harpum, The Stranger as Constructive Trustee, (1986) 102 LQR 114 M Davies, A S Bell and P L G Brereton, Nygh's Conflict of Laws in Australia, (9th ed, 2014) N Palmer, Palmer on Bailment, (3rd ed, 2009) Category: Principal judgment Parties: THC Holding Pty Ltd (Plaintiff) CMA Recycling Pty Ltd (Administrators Appointed) (First Defendant) Stemcor Australia Pty Ltd (Third Defendant) Stemcor Trade Finance Pty Ltd (Fourth Defendant) Philip Patrick Carter (Fifth Defendant) Nicholas John Martin (Sixth Defendant) Marcus William Ayres (Seventh Defendant) Representation: Counsel: G J Nell SC with (on 28 July 2014) J S Emmett (Plaintiff) D J A Mackay (First, Fifth, Sixth and Seventh Defendants) Solicitors: Norton White (Plaintiff) Minter Ellison (First, Fifth, Sixth and Seventh Defendants) File Number(s): SC 2013/283787