Power Rental Op Co Australia, LLC v Forge Group Power Pty Ltd (in liq) (receivers and managers appointed) [2017] NSWCA 8

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Power Rental Op Co Australia, LLC v Forge Group Power Pty Ltd (in liq) (receivers and managers appointed) [2017] NSWCA 8 Hearing dates: 23 September 2016 Decision date: 06 February 2017 Before: Bathurst CJ at [1]; Beazley P at [2]; Ward JA at [3] Decision: Appeal dismissed. Catchwords: PERSONAL PROPERTY SECURITIES LAW – Personal Property Securities Act 2009 (Cth) ss 8(1)(j), 10, 13(2)(a), 267 – meaning of fixtures and land in s 10 – whether lease of mobile gas turbines was a PPS lease as defined in s 13 – whether "affixed to land" in s 10 imported common law concepts or a bespoke test

REAL PROPERTY – fixtures to land – intention of parties – purpose of annexation – whether turbines connected for better enjoyment of turbines themselves or for better enjoyment of land – where lessee contractually obliged to return turbines – temporary nature of annexation – whether analogy with tenant's fixtures appropriate – degree of annexation - resting by own weight – where removal of turbines would cause no damage to land – where cost of removal does not exceed value of the turbines – where contract includes express term that property in turbines does not pass to owner of land

STATUTORY INTERPRETATION – general principles – use of extrinsic materials Legislation Cited: Building and Construction Industry Payments Act 2004 (Qld) Chattel Securities Act 1987 (WA), ss 6, 10 Conveyancing Act 1919 (NSW), s 67 Corporations Act 2001 (Cth), s 436A Duties Act 2008 (WA), s 3 Electricity Corporations Act 2005 (WA), s 4 Hire Purchase Act 1959 (WA), s 27 Personal Property Securities Act 2009 (Cth), ss 8, 10, 12, 13, 267, 306 Personal Property Securities Bill 2008, s 128 Personal Property Securities Bill 2009 Residential Tenancies Act 1987 (WA), ss 42, 44, 47 Stamp Act 1921 (WA), s 31B Supreme Court Act 1970 (NSW), s 101 Cases Cited: Agripower Barraba Pty Ltd v Blomfield (2015) 317 ALR 202; [2015] NSWCA 30 Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue (Northern Territory) (2009) 239 CLR 27; [2009] HCA 41 Alphapharm Pty Ltd v H Lundbeck A/S (2014) 254 CLR 247; [2014] HCA 42 Assam Railways and Trading Co Ltd v Inland Revenue Commissioners [1935] AC 445; [1934] All ER Rep 646 Attorney-General v RT Co Pty Ltd (1957) 97 CLR 147; [1957] HCA 29 Australian Provincial Assurance Co Ltd v Coroneo (1938) 38 SR (NSW) 700 Bank of Montreal v Innovation Credit Union [2010] 3 SCR 3 Bitumen and Oil Refineries (Aust) Ltd v Commissioner for Government Transport (1955) 92 CLR 200; [1955] HCA 1 Certain Lloyd's Underwriters v Cross (2012) 248 CLR 378; [2012] HCA 56 CIC Insurance Ltd v Bankstown Football Club Ltd (1997) 187 CLR 384; [1997] HCA 2 Combet v The Commonwealth (2005) 224 CLR 494; [2005] HCA 61 Commissioner of Stamps (WA) v L Whiteman Ltd (1940) 64 CLR 407; [1940] HCA 30 Commissioner of State Revenue (Vic) v Snowy Hydro Ltd (2012) 43 VR 109; [2012] VSCA 145 Commissioner of State Revenue v TEC Desert Pty Ltd [2009] WASCA 128 Commissioner of State Revenue v Uniqema Pty Ltd (2004) 9 VR 523; [2004] VSCA 82 Consolidated Edison Company of New York Inc v City of New York (1978) 44 N.Y.2d 536 Epic Energy (Pilbara Pipeline) Pty Ltd v Commissioner of State Revenue (2011) 43 WAR 186; [2011] WASCA 228 Forge Group Power Pty Limited (in liquidation) (receivers and managers appointed) v General Electric International Inc [2016] NSWSC 52 Harrison v Melhem (2008) 72 NSWLR 380; [2008] NSWCA 67 Holland v Hodgson (1872) LR 7 CP 328 IMM v The Queen (2016) 90 ALJR 529; [2016] HCA 14 J & D Rigging Pty Ltd v Agripower Australia Ltd [2015] 1 Qd R 562; [2013] QCA 406 James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53; [1998] HCA 78 National Australia Bank Ltd v Blacker (2000) 104 FCR 288; [2000] FCA 1458 N H Dunn Pty Ltd v L M Ericsson Pty Ltd (1979) 2 BPR 9241 Nominal Defendant v GLG Australia Pty Ltd (2006) 228 CLR 529; [2006] HCA 11 Northern Territory v Collins (2008) 235 CLR 619; [2008] HCA 49 Papakosmas v The Queen (1999) 196 CLR 297; [1999] HCA 37 Permanent Trustee Australia Ltd v Esanda Corp Ltd (1991) 6 BPR 13,420 PwC Legal v Perpetual; Trustees Victoria Ltd (2007) 14 BPR 26,835; [2007] NSWCA 271 Re Australian Federation of Construction Contractors; Ex parte Billing (1987) 61 ALJR 39; [1986] HCA 74 Re Bolton; Ex parte Beane (1987) 162 CLR 514; [1987] HCA 12 Reid v Smith (1906) 3 CLR 656; [1905] HCA 54 Re Origin Energy Power Ltd v Commissioner of State Revenue (2007) 70 ATR 64; [2007] WASAT 302 Saeed v Minister of Immigration and Citizenship (2010) 241 CLR 252; [2010] HCA 23 Shorten v David Hurst Constructions Pty Ltd (2008) 72 NSWLR 211; [2008] NSWCA 134 TEC Desert Pty Ltd v Commissioner of State Revenue (2010) 241 CLR 576; [2010] HCA 49 Vopak Terminal Darwin Pty Ltd v Natural Fuels Darwin Pty Ltd (subject to a deed of company arrangement) (2009) 258 ALR 89; [2009] FCA 742 Waller v New Zealand Bloodstock [2006] 3 NZLR 629; [2005] NZCA 254 Wilson v State Rail Authority of New South Wales (2010) 78 NSWLR 704; [2010] NSWCA 198 Texts Cited: Jones, O, Bennion on Statutory Interpretation (6th ed, 2013, LexisNexis) Stumbles, JH, "The PPSA: The extended reach of the definition of the PPSA security interest" (2011) 34(2) UNSW Law Journal 448 Sykes, E and Walker, S, The Law of Securities (5th edn, 1993, Lawbook Co) Tyler, ELG, Young PW and Croft, C, Fisher & Lightwood's Law of Mortgage (3rd Australian ed, 2010, LexisNexis) Category: Principal judgment Parties: Power Rental Op Co Australia, LLC (First Appellant) Power Rental Asset Co Two, LLC (Second Appellant) Forge Group Power Pty Ltd (in liq) (receivers and managers appointed) (First Respondent) General Electric International, Inc. (Second Respondent) Representation: Counsel: IR Pike SC with JAC Potts SC (Appellants) JC Sheahan QC with JR Williams (First Respondent)