Helicopter Fleet Management v Ellison [1999] NSWSC 320

Helicopter Fleet Management v Ellison [1999] NSWSC 320

The evidence did not establish that HFM's acquisition of the engine was a loan, mortgage, sham, or security arrangement on behalf of Goldwatch. The purchase moneys were provided by Mr Green and the second defendant, the invoice was issued to Microy Investments Pty Ltd, and there was no assignment by Goldwatch to HFM subject to an equity of redemption. HFM was therefore the legal owner of the engine, holding it on trust for the beneficial contributors, and was entitled to delivery up. In any event, any charge in favour of the receiver would attach only to Goldwatch's equity of redemption in the engine, not to the engine itself.

Jurisdiction
Australia
Judgment Date
18 March 1999
Procedural Posture
Equity Division Proceeding Concerning Ownership and Possession of Personal Property / Judgment After Hearing
Outcome
First plaintiff succeeded; declaration of legal ownership, delivery up of the engine, inquiry into damages, and costs ordered against the first defendant.
Legal Topics
['ownership and Possession of Helicopter Engine' 'whether Purchaser Held Absolute Interest or Security Interest' 'fixed and Floating Charge' 'receiver and Manager' 'priority Under Corporations Law S 280(1)(c)' 'equity of Redemption']
['personal Property' 'equity' 'corporations'] ['ownership and Possession of Helicopter Engine' 'whether Purchaser Held Absolute Interest or Security Interest' 'fixed and Floating Charge' 'receiver and Manager' 'priority Under Corporations Law S 280(1)(c)' 'equity of Redemption']

Case Brief

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Procedural Posture

Equity Division Proceeding Concerning Ownership and Possession of Personal Property / Judgment After Hearing

Legal Issues

  1. 1 ['Whether Helicopter Fleet Management Pty Ltd or the receiver, Mr Ellison, was entitled to possession of helicopter engine serial No CAE 835487.' 'Whether the transaction by which the engine was acquired was an absolute purchase by HFM as trustee for Mr Green and the second defendant or a mortgage/security arrangement for Goldwatch.' "Whether any charge held by the receiver attached to the engine itself or only to Goldwatch's equity of redemption." 'Whether the receiver had priority under section 280(1)(c) of the Corporations Law.']

Ratio Decidendi

The evidence did not establish that HFM's acquisition of the engine was a loan, mortgage, sham, or security arrangement on behalf of Goldwatch. The purchase moneys were provided by Mr Green and the second defendant, the invoice was issued to Microy Investments Pty Ltd, and there was no assignment by Goldwatch to HFM subject to an equity of redemption. HFM was therefore the legal owner of the engine, holding it on trust for the beneficial contributors, and was entitled to delivery up. In any event, any charge in favour of the receiver would attach only to Goldwatch's equity of redemption in the engine, not to the engine itself.

Court Disposition

First plaintiff succeeded; declaration of legal ownership, delivery up of the engine, inquiry into damages, and costs ordered against the first defendant.

Orders

  • ['Declare that the plaintiff is the legal owner of the engine CAE 835487.' 'Order that the first defendant deliver up such engine to the first plaintiff.' 'The first defendant give up the engine to the first plaintiff at Caloundra airport within seven days from this date.' 'The matter be referred to a Master, Equity...