Fistar v Riverwood Legion and Community Club Ltd [2016] NSWCA 81

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Fistar v Riverwood Legion and Community Club Ltd [2016] NSWCA 81 Hearing dates: 26 February 2016 Decision date: 20 April 2016 Before: Bathurst CJ at [1]; Leeming JA at [2]; Sackville AJA at [88] Decision: 1. Appeal allowed with costs.

2. Set aside order 3 of the short minutes of order made on 6 May 2015 and orders 1 and 2 made on 12 May 2015, and in lieu thereof order that the proceedings be dismissed with costs as against the Fifth Defendant. Catchwords: EQUITY – fraud – victim "invested" money with fraudster – fraudster dissipated victim's money – victim repaid largely using money stolen from Club – victim used money to acquire Torrens land – fraudster held bank cheque purchased with stolen funds on trust for Club – whether personal claim unavailable to Club because such a claim would "outflank" liability under Barnes v Addy – whether reasoning in Farah Constructions v Say-Dee Pty Ltd [2007] HCA 22; 230 CLR 89 inconsistent with, or confirmatory of, Club's personal claim – nature of overlapping claims at common law and in equity considered – whether Club's claim confined to direct recipient of stolen funds – whether victim was a volunteer – Austin v Khaliffe [1966] 2 NSWR 632 criticised and distinguished

MONEY HAD AND RECEIVED – availability against recipient of stolen funds – relationship with claims in equity – whether confined to direct recipient – whether recipient was a volunteer Legislation Cited: Registered Clubs Act 1976 (NSW) Supreme Court Act 1970 (NSW) Uniform Civil Procedure Rules 2005 (NSW), rr 6.3, 51.40 Cases Cited: Agip (Africa) Ltd v Jackson [1990] Ch 265 Allen v Roughley [1955] HCA 62; 94 CLR 98 Armory v Delamirie (1722) 1 Stra 505; 93 ER 664 Asher v Whitlock (1865) LR 1 QB 1 Austin v Khaliffe [1966] 2 NSWR 632 Australian Financial Services and Leasing Pty Ltd v Hills Industries Ltd [2014] HCA 14; 253 CLR 560 Banque Belge pour l'Etranger v Hambrouck [1921] 1 KB 321 Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 Barnes v Addy (1874) LR 9 Ch App 244 Black v S Freedman & Co (1910) 12 CLR 105 Break Fast Investments Pty Ltd v Perikles Giannopoulos (No 5) [2011] NSWSC 1508 Breskvar v Wall (1971) 126 CLR 376 Bride v Shire of Katanning [2013] WASCA 154 Brindley v Scott (1902) 2 SR (NSW) 49 British America Elevator Company Ltd v Bank of British North America [1919] AC 658 Costello v Chief Constable of Derbyshire Constabulary [2001] EWCA Civ 381; [2001] 1 WLR 1437 Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; 230 CLR 89 Fischer v Nemeske Pty Ltd [2016] HCA 11 Forestview v Perpetual Trustees WA Ltd [1998] HCA 15; 193 CLR 154 Frazer v Walker [1967] 1 AC 569 Government of the Islamic Republic of Iran v The Barakat Galleries Ltd [2007] EWCA Civ 1374; [2009] QB 22 Grimaldi v Chameleon Mining NL (No 2) [2012] FCAFC 6; 200 FCR 296 Heperu Pty Ltd v Belle [2009] NSWCA 252; 76 NSWLR 230 Ierino v Gutta [2012] WASCA 222; 43 WAR 372 Lipkin Gorman v Karpnale Ltd [1991] 2 AC 548 McKeown v Cavalier Yachts Pty Ltd (1988) 13 NSWLR 303 Metall und Rohstoff AG v Donaldson Lufkin & Jenrette Inc [1990] 1 QB 391 Mulcahy v Curramore Pty Ltd [1974] 2 NSWLR 464 NIML Ltd v MAN Financial Australia Ltd [2004] VSC 449; 1 BFRA 204 Perry v Clissold [1907] AC 73 Pilmer v Duke Group Ltd (in liq) [2001] HCA 31; 207 CLR 165 Rhone v Stephens [1994] 2 AC 310 Robb Evans of Robb Evans & Associates v European Bank Ltd [2004] NSWCA 82; 61 NSWLR 75 Roxborough v Rothmans of Pall Mall Australia Ltd [2001] HCA 68; 208 CLR 516 Russell v Scott (1936) 55 CLR 440 Shalson v Russo [2003] EWHC 1637 (Ch); [2005] Ch 281 Sze Tu v Lowe [2014] NSWCA 462; 89 NSWLR 317 Thomson v Clydesdale Bank Ltd [1893] AC 282 Toksoz v Westpac Banking Corporation [2012] NSWCA 199; 289 ALR 577 Westdeutsche Landesbank Girozentrale v Islington London Borough Council [1996] AC 669 Williams v Milotin (1957) 97 CLR 465 Texts Cited: R Chambers, Resulting Trusts (1999, Clarendon Press, Oxford) J Dietrich and P Ridge, Accessories in Private Law, (2015, Cambridge University Press) D Fox, Property Rights in Money (2008, Oxford University Press) K Handley, "The Black v Freedman Trust: Vindicating Property Rights or Remedying Wrongs" in E Bant and M Bryan (eds), Principles of Proprietary Remedies (2013, Thomson Reuters) 117 D Jackson, "The first limb of Barnes v Addy: a taxonomy in tatters" in J McKenna and A Boylan (eds), Queensland Legal Yearbook 2014 (2015, Supreme Court Library Queensland) 285 A J Oakley, Parker and Mellows: The Modern Law of Trusts (9th ed 2008, London, Sweet & Maxwell) F Pollock and R Wright, An Essay on Possession in the Common Law (1888, Clarendon Press, Oxford) R Sackville, "The Torrens System – Some Thoughts on Indefeasibility and Remedies" (1973) 47 ALJ 526 A W B Simpson, Legal Theory and Legal History: Essays on the Common Law (1987, Hambledon Press) S Thomas, "Thieves as trustees: The enduring legacy of Black v S Freedman & Co Ltd" (2009) 3 Journal of Equity 52 L Tucker et al, Lewin on Trusts (19th ed 2015, Sweet & Maxwell) Category: Principal judgment Parties: Ms Tina Fistar (Appellant) Riverwood Legion and Community Club Ltd (Respondent) Representation: Counsel: C Birch SC, N Obrart (Appellant) H N Newton (Respondent)