Marsden re Snowburn Pty Ltd [2009] NSWSC 710

Marsden re Snowburn Pty Ltd [2009] NSWSC 710

Moneys standing to the credit of the bank account designated as 'trust account' and received from customers for service provision were held by Snowburn Pty Limited on trust, despite absence of express trust clauses in contracts, based on the purpose, segregation, designation of the account, and course of dealings. Directions will be given accordingly to the receivers.

Jurisdiction
Australia
Judgment Date
23 July 2009
Procedural Posture
Application for Directions to Receivers / Interlocutory Ex Parte Directions Sought Under S 424 Corporations Act 2001 (cth)
Outcome
Direction to be given: moneys in Snowburn's trust account are trust moneys; directions to receivers justified as sought; further directions on sale of business deferred.
Legal Topics
['receivership' 'trusts' 'directions to Receivers' 'agency' 'trust Accounts']
['corporations Law' 'equity'] ['receivership' 'trusts' 'directions to Receivers' 'agency' 'trust Accounts']

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Procedural Posture

Application for Directions to Receivers / Interlocutory Ex Parte Directions Sought Under S 424 Corporations Act 2001 (cth)

Legal Issues

  1. 1 ["Whether moneys held in Snowburn Pty Limited's 'trust account' are trust moneys" 'Whether directions should be given to receivers regarding characterization and treatment of such moneys']

Ratio Decidendi

Moneys standing to the credit of the bank account designated as 'trust account' and received from customers for service provision were held by Snowburn Pty Limited on trust, despite absence of express trust clauses in contracts, based on the purpose, segregation, designation of the account, and course of dealings. Directions will be given accordingly to the receivers.

Court Disposition

Direction to be given: moneys in Snowburn's trust account are trust moneys; directions to receivers justified as sought; further directions on sale of business deferred.

Orders

  • ["Direction that moneys in the bank account designated 'trust account' are trust moneys and to be treated as such by the receivers." 'Direction that the receivers are justified in repaying $32,456.39 borrowed by them from the Commonwealth Bank by way of overdraft account from the pre-receivership trust account.'...