Citadel Financial Corporation Pty Limited v Elite Highrise Services Pty Limited (No 3) [2014] NSWSC 1926

Citadel Financial Corporation Pty Limited v Elite Highrise Services Pty Limited (No 3) [2014] NSWSC 1926

Citadel did not have a seriously arguable perfected security interest with priority over CML because the invoice relied upon was not signed by Elite and emails sent months before the invoice could not amount to adoption or acceptance of that writing for the purposes of s 20(2). Skyline and Pacific did have a seriously arguable security interest because the correspondence, including the 5 April 2013 letter retaining title pending payment, read with prior correspondence identifying the scaffolding, and Elite's provision of a cheque, could constitute adoption or acceptance of the writing. The balance of convenience favoured restraining sale or removal of the 900 tonnes supplied by Skyline...

Jurisdiction
Australia
Judgment Date
15 December 2014
Procedural Posture
Commercial List Summons and Equity Division Duty List Interlocutory Application Concerning Claimed Security Interests in Scaffolding Equipment / Interlocutory Application for Continuation of Interim Injunctive Relief
Outcome
Citadel's interlocutory application failed; interlocutory injunction granted in proceedings 2014/365875 restraining sale or removal of scaffolding supplied by Skyline and/or Pacific.
Legal Topics
['personal Property Securities Act 2009 (cth)' 'competing Priority of Security Interests' 'security Agreement Evidenced by Writing Adopted or Accepted by Grantor' 'interlocutory Injunction' 'balance of Convenience']
['commercial Law' 'personal Property Securities' 'equity'] ['personal Property Securities Act 2009 (cth)' 'competing Priority of Security Interests' 'security Agreement Evidenced by Writing Adopted or Accepted by Grantor' 'interlocutory Injunction' 'balance of Convenience']

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Procedural Posture

Commercial List Summons and Equity Division Duty List Interlocutory Application Concerning Claimed Security Interests in Scaffolding Equipment / Interlocutory Application for Continuation of Interim Injunctive Relief

Legal Issues

  1. 1 ["Whether Citadel had a seriously arguable security interest with priority over CML's security interest in scaffolding supplied to Elite." "Whether Skyline and Pacific had a seriously arguable security interest enforceable against third parties and entitled to priority over CML's security interest." 'Whether the balance of convenience favoured restraining sale or removal of scaffolding pending hearing or further order.']

Ratio Decidendi

Citadel did not have a seriously arguable perfected security interest with priority over CML because the invoice relied upon was not signed by Elite and emails sent months before the invoice could not amount to adoption or acceptance of that writing for the purposes of s 20(2). Skyline and Pacific did have a seriously arguable security interest because the correspondence, including the 5 April 2013 letter retaining title pending payment, read with prior correspondence identifying the scaffolding, and Elite's provision of a cheque, could constitute adoption or acceptance of the writing. The balance of convenience favoured restraining sale or removal of the 900 tonnes supplied by Skyline...

Court Disposition

Citadel's interlocutory application failed; interlocutory injunction granted in proceedings 2014/365875 restraining sale or removal of scaffolding supplied by Skyline and/or Pacific.

Orders

  • ['The injunction granted on 3 December 2014 and subsequently varied in proceedings 2013/372920 be discharged.' "The plaintiff in proceedings 2013/372920 pay the defendants' costs of the application." 'Upon the plaintiffs in proceedings 2014/365875 by their solicitor giving to the court the usual undertaking as to...