LTDC Pty Ltd v Cashflow Finance Australia Pty Ltd [2019] NSWSC 150

LTDC Pty Ltd v Cashflow Finance Australia Pty Ltd [2019] NSWSC 150

The defendant's deliberate failure to lodge a caveat, coupled with the plaintiff's reasonable reliance on clear title searches and the absence of contrary information, makes it inequitable for the defendant to retain priority; thus, the defendant's earlier interest is postponed to the plaintiff's later interest.

Source-derived case information.

Parties
Plaintiff: LTDC Pty Ltd; Defendant: Cashflow Finance Australia Pty Ltd
Jurisdiction
Australia
Judgment Date
25 February 2019
Procedural Posture
Principal Judgment / Final Judgment
Outcome
Plaintiff has priority over the defendant and is entitled to the remaining proceeds of sale. Defendant to pay plaintiff's costs.
Legal Topics
Priorities, Competing Equitable Interests, Postponing Conduct, Real Property, Mortgage, Caveats, Invoice Financing
Equity Priorities Competing Equitable Interests Postponing Conduct Real Property Mortgage Caveats Invoice Financing

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Parties

LTDC Pty Ltd

Plaintiff

Cashflow Finance Australia Pty Ltd

Defendant

Procedural Posture

Principal Judgment / Final Judgment

Legal Issues

  1. 1 Whether the defendant's failure to lodge a caveat causes its prior equitable interest to be postponed to the plaintiff's later interest in the property

Ratio Decidendi

The defendant's deliberate failure to lodge a caveat, coupled with the plaintiff's reasonable reliance on clear title searches and the absence of contrary information, makes it inequitable for the defendant to retain priority; thus, the defendant's earlier interest is postponed to the plaintiff's later interest.

Court Disposition

Plaintiff has priority over the defendant and is entitled to the remaining proceeds of sale. Defendant to pay plaintiff's costs.

Orders

  • The entire amount held in the trust account from the sale of the property is to be paid to the plaintiff.
  • The defendant is to pay the plaintiff's costs of the proceedings.