Singleton & Anor v Percy & Anor [2000] NSWSC 889

Singleton & Anor v Percy & Anor [2000] NSWSC 889

The deed of variation did not extinguish the fixed charge over the cotton crops. Although the substituted annexure A omitted the former section referring to crops, the deed of variation confirmed that the fixed charge continued in full force and effect except as varied, and the operative charging provisions were not varied. Accordingly, Benonyx had given a fixed charge over the 1999/2000 crop grown on "Beemery", and the plaintiffs were entitled to the proceeds held by Auscott and to apply them in priority to amounts owing to Elders Rural Services Limited.

Jurisdiction
Australia
Judgment Date
30 August 2000
Procedural Posture
Equity Division Proceedings Concerning Entitlement to Proceeds of a Cotton Crop and the Effect of Security Documents / Urgent Hearing and Judgment
Outcome
Plaintiffs succeeded; declarations made and defendants ordered to pay the plaintiffs' costs.
Legal Topics
['fixed Charge' 'deed of Variation' 'construction of Security Documents' 'crop Proceeds' 'receiver and Manager' 'crop Lien' 'costs']
['equity' 'secured Transactions' 'property Law' 'partnership'] ['fixed Charge' 'deed of Variation' 'construction of Security Documents' 'crop Proceeds' 'receiver and Manager' 'crop Lien' 'costs']

Case Brief

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Procedural Posture

Equity Division Proceedings Concerning Entitlement to Proceeds of a Cotton Crop and the Effect of Security Documents / Urgent Hearing and Judgment

Legal Issues

  1. 1 ['Whether the deed of variation dated 26 June 1999 varied the fixed charge dated 30 September 1998 so as to exclude cotton crops from the charged property.' 'Whether the plaintiffs were entitled as against the defendants to money held by Auscott Limited or Auscott Marketing Pty Limited representing proceeds of the 1999/2000 cotton crop grown on "Beemery".' 'Whether the plaintiffs were entitled to apply those proceeds in discharge of amounts owing by the first plaintiff to Elders Rural Services Limited ahead of claims by the defendants.']

Ratio Decidendi

The deed of variation did not extinguish the fixed charge over the cotton crops. Although the substituted annexure A omitted the former section referring to crops, the deed of variation confirmed that the fixed charge continued in full force and effect except as varied, and the operative charging provisions were not varied. Accordingly, Benonyx had given a fixed charge over the 1999/2000 crop grown on "Beemery", and the plaintiffs were entitled to the proceeds held by Auscott and to apply them in priority to amounts owing to Elders Rural Services Limited.

Court Disposition

Plaintiffs succeeded; declarations made and defendants ordered to pay the plaintiffs' costs.

Orders

  • ['The plaintiffs are entitled as against the defendants to the money now held by Auscott Limited or Auscott Marketing Pty Limited, being the proceeds of the ginning of the 1999/2000 cotton crop grown on "Beemery" New South Wales.' 'The plaintiffs are entitled to apply the whole of that money in discharge of all...