Reliance Financial Services Pty Ltd v Antalija Developments No 4 Pty Ltd (No 3) [2023] NSWSC 304

Reliance Financial Services Pty Ltd v Antalija Developments No 4 Pty Ltd (No 3) [2023] NSWSC 304

Clause 3(a) and clause 3(c) of the Unit Trust Deed gave Ms Price, as a Registered Unit Holder, a beneficial interest in the whole Trust Fund, and the restrictions in the deed prevented her from claiming any particular part of the fund but did not deny any interest in the trust property. Because the Antalija Unit Trust property included land, Ms Price had an equitable interest in that land, and clause 18(b) of the Deed of Loan charged that equitable interest in favour of Marginata. The charge continued to attach to the proceeds or distribution payable to Ms Price, so Marginata was entitled to the declaration and payment order sought.

Jurisdiction
Australia
Judgment Date
31 March 2023
Procedural Posture
Equity Proceedings Concerning Construction of a Deed of Loan and Unit Trust Deed / Principal Judgment on the Third Plaintiff's Claim Against the Fifth Defendant
Outcome
Marginata Securities Pty Ltd succeeded on its claim against the fifth defendant.
Legal Topics
['construction of Commercial Agreements' 'unit Trusts' 'equitable Interests in Land' 'equitable Charges' 'loan Security']
['contracts' 'equity' 'trusts' 'property'] ['construction of Commercial Agreements' 'unit Trusts' 'equitable Interests in Land' 'equitable Charges' 'loan Security']

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Procedural Posture

Equity Proceedings Concerning Construction of a Deed of Loan and Unit Trust Deed / Principal Judgment on the Third Plaintiff's Claim Against the Fifth Defendant

Legal Issues

  1. 1 ["Whether the fifth defendant's entitlement to a distribution as a Registered Unit Holder of the Antalija Unit Trust was subject to a valid charge under the Deed of Loan made on 15 March 2018." 'Whether the terms of the Unit Trust Deed gave the fifth defendant, as Registered Unit Holder, an equitable interest in land held by the trustee of the Antalija Unit Trust for the purposes of clause 18(b) of the Deed of Loan.' "Whether clause 18(c) of the Deed of Loan created an equitable charge over the fifth defendant's interest in the Antalija Unit Trust as part of all her assets."]

Ratio Decidendi

Clause 3(a) and clause 3(c) of the Unit Trust Deed gave Ms Price, as a Registered Unit Holder, a beneficial interest in the whole Trust Fund, and the restrictions in the deed prevented her from claiming any particular part of the fund but did not deny any interest in the trust property. Because the Antalija Unit Trust property included land, Ms Price had an equitable interest in that land, and clause 18(b) of the Deed of Loan charged that equitable interest in favour of Marginata. The charge continued to attach to the proceeds or distribution payable to Ms Price, so Marginata was entitled to the declaration and payment order sought.

Court Disposition

Marginata Securities Pty Ltd succeeded on its claim against the fifth defendant.

Orders

  • ['Declaration that any sum payable by the first defendant to the fifth defendant, being her entitlement to a distribution as a Registered Unit Holder of the Antalija Unit Trust, is charged for payment by the fifth defendant in her capacity as the trustee of the Susan Price-Arcidiacono Discretionary Trust to the...