RENT PLUS LIMITED v SORENSON [2010] NSWSC 564

RENT PLUS LIMITED v SORENSON [2010] NSWSC 564

The sale agreement assigned receivables payable under the terms of customer contracts but did not assign FPL's rights under the New Zealand District Court judgment against Mr and Mrs Sorenson. Because the claim against them had merged in the judgment, the amounts payable by them were payable under the judgment rather than under the customer contract. On the proper construction of the professionally drafted agreement, including its definition of receivables and excluded assets, rights under the New Zealand judgment were not vested in Rent Plus when it registered the judgment, so the registration had to be set aside.

Jurisdiction
Australia
Judgment Date
02 June 2010
Procedural Posture
Application Concerning Registration of a New Zealand District Court Judgment Under Part 2 of the Foreign Judgments Act 1991 (cth) / Notice of Motion by the Judgment Debtors to Set Aside Registration of the Foreign Judgment
Outcome
Registration of the New Zealand judgment was set aside, with costs payable by the Judgment Creditor to the judgment debtors.
Legal Topics
['registration of Foreign Judgment' 'assignment of Receivables and Judgment Rights' 'merger of Cause of Action in Judgment' 'construction of Asset Sale Agreement']
['civil Procedure' 'foreign Judgments' 'contract Law'] ['registration of Foreign Judgment' 'assignment of Receivables and Judgment Rights' 'merger of Cause of Action in Judgment' 'construction of Asset Sale Agreement']

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Procedural Posture

Application Concerning Registration of a New Zealand District Court Judgment Under Part 2 of the Foreign Judgments Act 1991 (cth) / Notice of Motion by the Judgment Debtors to Set Aside Registration of the Foreign Judgment

Legal Issues

  1. 1 ['Whether rights under the New Zealand District Court judgment were vested in Rent Plus Limited when it applied for registration in New South Wales.' "Whether the agreement between Finance Portfolio Limited and Rent Plus Limited assigned FPL's rights against Mr and Mrs Sorenson under the New Zealand judgment." 'Whether amounts payable under a customer contract after judgment remained amounts payable under the terms of the customer contract, or were instead payable under the judgment because of merger.']

Ratio Decidendi

The sale agreement assigned receivables payable under the terms of customer contracts but did not assign FPL's rights under the New Zealand District Court judgment against Mr and Mrs Sorenson. Because the claim against them had merged in the judgment, the amounts payable by them were payable under the judgment rather than under the customer contract. On the proper construction of the professionally drafted agreement, including its definition of receivables and excluded assets, rights under the New Zealand judgment were not vested in Rent Plus when it registered the judgment, so the registration had to be set aside.

Court Disposition

Registration of the New Zealand judgment was set aside, with costs payable by the Judgment Creditor to the judgment debtors.

Orders

  • ['Set aside the judgment herein entered on pursuant to orders made on 11 November 2009 and amended on 14 December 2009.' 'Order that the Judgment Creditor pay the Judgment debtors costs of the proceedings.']