LTDC Pty Ltd v Cashflow Finance Australia Pty Ltd [2019] NSWSC 150

Supreme Court New South Wales

Medium Neutral Citation: LTDC Pty Ltd v Cashflow Finance Australia Pty Ltd [2019] NSWSC 150 Hearing dates: 11 February 2019 Date of orders: 25 February 2019 Decision date: 25 February 2019 Jurisdiction: Equity Before: Darke J Decision: Plaintiff has priority over the defendant, and is entitled to the remaining proceeds of sale. Catchwords: EQUITY – priorities – competing equitable interests – postponing conduct – real property subject to first registered mortgage – invoice financier obtains charge over property – practice of invoice financiers not to lodge caveats until facility is in default – subsequent lender obtains mortgage over property – whether in the circumstances the failure to caveat causes first lender to lose priority – subsequent lender acted in reliance upon results of title searches – reasonably safe for subsequent lender to assume that no equitable mortgage or charge existed – priority of first lender postponed Legislation Cited: Personal Property Securities Act 2009 (Cth) Cases Cited: Bunnings Group Ltd v Hanson Construction Materials Pty Ltd [2017] WASC 132 Butler v Fairclough (1917) 23 CLR 78 Double Bay Newspapers Pty Ltd v A W Holdings Pty Ltd (1996) 42 NSWLR 409 Elderly Citizens Homes of SA Inc v Balnaves (1998) 72 SASR 210 Heid v Reliance Finance Corporation Pty Ltd (1983) 154 CLR 326 J & H Just (Holdings) Pty Ltd v The Bank of New South Wales (1971) 125 CLR 546 Lapin v Abigail (1930) 44 CLR 166 Latec Investments Ltd v Hotel Terrigal Pty Ltd (in liquidation) (1965) 113 CLR 265 Person-to-Person Financial Services Pty Ltd v Sharari [1984] 1 NSWLR 745 Category: Principal judgment Parties: LTDC Pty Ltd (Plaintiff) Cashflow Finance Australia Pty Ltd (Defendant) Representation: Counsel: Mr A C Casselden SC (Plaintiff) Ms F T Roughley (Defendant)