Weekly Law Review Thursday, 5 March 2015 View in browser

A daily Bulletin listing our choice of Decisions of Superior Courts of Australia.
Benchmark

Weekly Law Review

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Executive Summary (One Minute Read)
CIVIL SELECTION
Wilmink v Westpac Banking Corporation (FCAFC) – loan statement incapable of being converted into a bill of exchange – claim against bank failed (I B)
Atkinson v Commissioner of Taxation (FCAFC) - taxation - statement of account incapable of conversion to a bill of exchange - appeal dismissed (B G)
Griffin Energy Group Pty Limited (Subject to DOCA) v ICICI Bank Ltd (Singapore Branch) (NSWSC) – standby letters of credit – sale agreement - conditions to enable vendor to demand payment could not be met (I B C)
Bonifacio v NSW Trustee and Guardian acting as executor of the Estate of the late Woitala (NSWSC) – limitations – causes of action arising from fraudulent transfer of property statute-barred (I B)
O’Brien v Hall (VSC) - testator’s family maintenance claim - no grant of representation in Victoria - Court had no jurisdiction - claim dismissed (B)
Majet v Goggin & Miller as Trustees of the Bankrupt Estate of Brett-Hall (QSC) – contract – conveyancing – bankruptcy – sellers entitled to return of deposit under contract for sale of land which did not complete (I B)
Swick Nominees Pty Ltd v Leroi International Inc [No 2] (WASCA) – product liability – multiple failures of air compressor unit – no breach of duty by manufacturer (I B)
Connaughton v Pacific Rail Engineering Pty Ltd (NSWDC) - tree fell on truck - Motor Accidents Compensation Act 1999 (NSW) - statutory interpretation - blameless accident - causation - verdict for plaintiff (I)
Summaries With Link (Five Minute Read)
Wilmink v Westpac Banking Corporation [2015] FCAFC 17
Full Court of the Federal Court of Australia
Foster, Yates & Gleeson JJ
Bills of exchange - appellants claimed damages against bank based on alleged default by bank under purported bill of exchange - primary judge concluded purported bill of exchange was not a bill within meaning of Bills of Exchange Act 1909 (Vic) – appellants contended primary judge erred in finding that a loan statement was incapable of conversion to a bill of exchange in s25 – appellants also claimed primary judge denied them procedural fairness by hearing proceeding on the papers – held: loan statement did not satisfy requirement under s25 of a simple signature on a blank stamped paper – loan statement not a document capable of being converted into bill of exchange – no denial of procedural fairness in delivering judgment without oral hearing – appeal dismissed.
Wilmink (I B)
[From Benchmark 26 February 2015]
Atkinson v Commissioner of Taxation [2015] FCAFC 18
Full Court of the Federal Court of Australia
Foster, Yates & Gleeson JJ
Bills of exchange - Commissioner commenced debt recovery proceedings against first appellant - ATO sent first appellant statement of account in respect of income tax debt - ATO received purported bill of exchange from first appellant - purported bill comprised documents including statement of account to which alterations and additions were made - primary judge ordered proceedings be dealt with without oral hearing on basis they were frivolous or vexatious and dismissed appellants’ claim against Commissioner - whether converted statement of account constituted bill of exchange - held: receipt of statement of account did not confer any authority upon first appellant to “fill up” statement of account so that it became completed bill of exchange, or to impose liability upon Commissioner to pay damages - statement of account did not answer description in s25 Bills of Exchange Act 1909 (Cth) - no denial of procedural fairness - appeal dismissed
Atkinson (B G)
[From Benchmark 27 February 2015]
Griffin Energy Group Pty Limited (Subject to DOCA) v ICICI Bank Ltd (Singapore Branch) [2015] NSWSC 87
Supreme Court of New South Wales
Hammerschlag J
Standby letters of credit – dispute concerning operation of three standby letters of credit issued on 28/2/11 – each letter of credit had maximum liability of $50 million and on its face was to expire on 1/3/15 – letters of credit issued to secure final instalment under sale agreement for sale of shares in companies – sale shares represented underlying interest in coal mine – whether conditions to enable plaintiff to demand payment under letters of credit could be met - International Standby Practices (ISP98) - provision for extension of date for timely presentation where last day for presentation not a business day – requirement of declaration that amount due and payable and delivery of drafts - held: letters of credit not capable of being security for payment of last instalment – summons dismissed.
Griffin Energy Group Pty Limited (I B C)
[From Benchmark 26 February 2015]
Bonifacio v NSW Trustee and Guardian acting as executor of the Estate of the late Woitala [2015] NSWSC 124
Supreme Court of New South Wales
Darke J
Limitation of actions - plaintiffs sought declaration executor of deceased’s estate held half interest in property on constructive trust for them - plaintiffs alleged constructive trust arose in 1995 when deceased fraudulently registered transfer to himself of plaintiffs’ interest in property - executor accepted transfer was fraudulent, but claimed causes of action statute-barred - common ground that plaintiffs became aware of fraud at least by February 1998 - proceedings not commenced until December 2013 – when cause of action accrued – adverse possession - held: deceased in adverse possession of property at least from the end of 1998 - cause of action to recover land had accrued by end of 1998 - plaintiffs had discovered fraud by that date - twelve year limitation period in s27(2) would have expired by end of 2010 - in relation to cause of action to recover trust property, limitation period in s47(1) also commenced by end of 1998 and expired by end of 2010 - actions statute-barred.
Bonifacio (I B)
[From Benchmark 3 March 2015]
O’Brien v Hall [2015] VSC 52
Supreme Court of Victoria
Derham AsJ
Testator’s family maintenance - daughter of deceased from his first marriage sought order for maintenance on basis Will failed to make such provision - there was no grant of probate of deceased’s Will in Victoria - grant of probate was in United Kingdom - defendant second wife of deceased was executrix and universal beneficiary - defendant sought order dismissing proceeding and judgment on basis originating motion did not disclose a cause of action, or summary judgment on basis claim had no real prospect of success - held: Court had no jurisdiction in relation to application until there was grant of representation in Victoria - implicit in s91 Administration and Probate Act 1958 (Vic) that there must be grant of representation for there to be jurisdiction in Court to entertain application - appropriate to dismiss proceeding and leave plaintiff to pursue rights to compel defendant to obtain grant of representation in Victoria.
O’Brien (B)
[From Benchmark 2 March 2015]
Majet v Goggin & Miller as Trustees of the Bankrupt Estate of Brett-Hall [2015] QSC 38
Supreme Court of Queensland
Henry J
Contract – conveyancing – bankruptcy - cross-applications concerning fate of deposit paid under contract for sale of land that did not complete – sellers sought order that the deposit be paid to their solicitor – trustees of buyer’s bankrupt estate sought order that deposit be paid to their solicitors - impact of bankruptcy trustee’s disclaimer pursuant to s133(2) Bankruptcy Act 1966 (Cth) on rights, interests and liabilities of parties to contract – held: contract specifically preserved to seller a right in respect of deposit - entitlement or right was preserved by proviso to s133(2) so that it was unaffected by disclaimer – sellers entitled to deposit pursuant to contract.
Majet (I B)
[From Benchmark 3 March 2015]
Swick Nominees Pty Ltd v Leroi International Inc [No 2] [2015] WASCA 35
Court of Appeal of Western Australia
Buss & Murphy JJA; Edelman J
Negligence – product liability – contract - action for damages against respondents in connection with appellant’s purchase by of air compressor unit - trial judge dismissed claim against manufacturer and allowed claim against supplier – appellant contended primary judge erred in dismissing claim against manufacturer and in assessment of quantum of damages – multiple failures of complex machinery - fitness for purpose – pure economic loss – whether trial judge should have found manufacturer breached duty of care - res ipsa loquitur – proof of negligence - held: trial judge correct to find no breach of duty by manufacturer – no issue of quantification of damages in relation to manufacturer – no error in assessment of damages for breach of contract by supplier – appeals dismissed.
Swick Nominees Pty Ltd (I B)
[From Benchmark 3 March 2015]
Connaughton v Pacific Rail Engineering Pty Ltd, NSWDC, 12 February 2015
District Court of New South Wales
Norton SC DCJ
Plaintiff injured when his truck collided with a fallen or falling tree – trial on liability and whether the accident was a blameless accident - s7A Motor Accidents Compensation Act 1999 (NSW) - held: the tree fell on the truck as the plaintiff was driving it; the plaintiff did not drive the truck into a fallen tree - in statutory interpretation, legislative intention is the intention to be inferred from the words actually used in the statute, not the subjective intention of members of the legislature that passed the statute - s3A Motor Accidents Compensation Act does not apply to blameless accidents - as there was no negligence or other tort by the plaintiff or the truck’s owner, the accident was a blameless accident - even under the extended definition of causation in s7E, the plaintiff did not cause the accident - verdict for plaintiff – damages to be assessed.
Connaughton (I)
[From Benchmark 2 March 2015]