Marsden v DCL Developments Pty Ltd (Receivers and Managers appointed) [2016] NSWSC 823

Marsden v DCL Developments Pty Ltd (Receivers and Managers appointed) [2016] NSWSC 823

DCL's proposed cross-claim raised a serious question to be tried because the evidence, if accepted, could support a finding that Rabobank imposed conditions when DCL had to accept them to obtain the flock and was motivated by discreditable reasons to force DCL off its books. The balance of convenience favoured maintaining the status quo pending final hearing because Mr and Mrs Howe lived on the property, egg farming was their sole income, the evidence did not show a real risk that they would run down the business over the short period before trial, and appropriate conditions could address concerns about the flock and business viability.

Jurisdiction
Australia
Judgment Date
20 June 2016
Procedural Posture
Possession and Receivership Proceeding With Proposed Cross Claim Alleging Unconscionable Conduct / Interlocutory Application for Injunctive Relief Pending Expedited Final Hearing
Outcome
Defendants' application for injunctive relief to restrain the receivers granted; plaintiffs to be heard as to form of orders.
Legal Topics
['interlocutory Injunction' 'receivers and Managers' 'unconscionable Conduct' 'serious Question to Be Tried' 'balance of Convenience' 'farm Debt and Secured Lending']
['equity' 'corporations and Receivership' 'banking and Finance' 'consumer Protection' 'civil Procedure'] ['interlocutory Injunction' 'receivers and Managers' 'unconscionable Conduct' 'serious Question to Be Tried' 'balance of Convenience' 'farm Debt and Secured Lending']

Case Brief

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Procedural Posture

Possession and Receivership Proceeding With Proposed Cross Claim Alleging Unconscionable Conduct / Interlocutory Application for Injunctive Relief Pending Expedited Final Hearing

Legal Issues

  1. 1 ["Whether DCL's proposed cross-claim alleging unconscionable conduct by Rabobank under the ASIC Act raised a serious question to be tried sufficient to support interlocutory injunctive relief." 'Whether the balance of convenience favoured restraining the receivers from exercising their functions and maintaining the existing management arrangements pending final hearing.' 'Whether the evidence showed a sufficient risk to the welfare of the livestock or viability of the egg farm to justify permitting the receivers to manage the business before final determination.']

Ratio Decidendi

DCL's proposed cross-claim raised a serious question to be tried because the evidence, if accepted, could support a finding that Rabobank imposed conditions when DCL had to accept them to obtain the flock and was motivated by discreditable reasons to force DCL off its books. The balance of convenience favoured maintaining the status quo pending final hearing because Mr and Mrs Howe lived on the property, egg farming was their sole income, the evidence did not show a real risk that they would run down the business over the short period before trial, and appropriate conditions could address concerns about the flock and business viability.

Court Disposition

Defendants' application for injunctive relief to restrain the receivers granted; plaintiffs to be heard as to form of orders.

Orders

  • ['The balance of convenience favoured maintaining the status quo pending the final hearing, subject to appropriate conditions.' 'Plaintiffs to be heard as to the form of orders.']