Ferrier v Bottomer [1972] HCA 11

Ferrier v Bottomer [1972] HCA 11

On the proper construction of the trust deed, the fixed charge after crystallization applied to all assets of the company in Queensland and New South Wales, whether present at the time of crystallization or subsequently acquired or brought into Queensland or New South Wales thereafter, including proceeds of debts previously situated outside those States but later received there. The asset's location at the relevant time, not its origin, governs whether it falls within the charge.

Jurisdiction
Australia
Procedural Posture
Appeal / Final Appellate Judgment
Outcome
Appeal dismissed with costs.
Legal Topics
['floating Charge' 'fixed Charge' 'construction of Trust Deeds' 'crystallization of Floating Charges' 'scope of Security Interests']
['company Law' 'equity' 'secured Transactions'] ['floating Charge' 'fixed Charge' 'construction of Trust Deeds' 'crystallization of Floating Charges' 'scope of Security Interests']

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Procedural Posture

Appeal / Final Appellate Judgment

Legal Issues

  1. 1 ['Whether proceeds of debts due to the company situated outside Queensland and New South Wales but received in Queensland are caught by the fixed charge created by the trust deed upon crystallization.' 'Whether the fixed charge extends to future assets brought within the relevant States after crystallization of the floating charge.']

Ratio Decidendi

On the proper construction of the trust deed, the fixed charge after crystallization applied to all assets of the company in Queensland and New South Wales, whether present at the time of crystallization or subsequently acquired or brought into Queensland or New South Wales thereafter, including proceeds of debts previously situated outside those States but later received there. The asset's location at the relevant time, not its origin, governs whether it falls within the charge.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed with costs.']