Cambridge Credit Corporation Ltd v Lombard Australia Ltd [1977] HCA 29

Cambridge Credit Corporation Ltd v Lombard Australia Ltd [1977] HCA 29

Clause 2(c) of the mortgage, properly construed, secured Cambridge's guarantee liabilities to Lombard once they became due, owing or payable, and the Real Property Act, 1861 Q. did not require a separate bill of encumbrance for a security covering both a loan and another liability. Because Lombard's registered mortgage was effective to secure those liabilities, Permanent's priority claim failed.

Jurisdiction
Australia
Procedural Posture
Appeal / High Court Appeal From Dismissal of Action by Supreme Court of Queensland and Judgment on Counterclaim
Outcome
Appeal dismissed with costs.
Legal Topics
['construction of Bill of Mortgage' 'continuing Security' 'guarantee Liabilities' 'registration of Mortgage' 'bill of Encumbrance' 'priority of Securities']
['property Law' 'mortgage Law' 'torrens Title' 'contract Interpretation'] ['construction of Bill of Mortgage' 'continuing Security' 'guarantee Liabilities' 'registration of Mortgage' 'bill of Encumbrance' 'priority of Securities']

Case Brief

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Procedural Posture

Appeal / High Court Appeal From Dismissal of Action by Supreme Court of Queensland and Judgment on Counterclaim

Legal Issues

  1. 1 ["Whether cl. 2(c) of the mortgage secured Cambridge's liabilities to Lombard arising under guarantees given before execution of the mortgage." 'Whether registration of the bill of mortgage was effective to secure the guarantee liabilities over the Kingston Park Estate, or whether a bill of encumbrance was necessary.' "Whether Permanent's charge under the trust deed ranked in priority to Lombard's mortgage."]

Ratio Decidendi

Clause 2(c) of the mortgage, properly construed, secured Cambridge's guarantee liabilities to Lombard once they became due, owing or payable, and the Real Property Act, 1861 Q. did not require a separate bill of encumbrance for a security covering both a loan and another liability. Because Lombard's registered mortgage was effective to secure those liabilities, Permanent's priority claim failed.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed with costs.']