Carter, Bruce James v Makita (Australia) Pty Ltd & Ors [1995] FCA 978

Carter, Bruce James v Makita (Australia) Pty Ltd & Ors [1995] FCA 978

The contractual arrangements between United Hardware and Makita, and United Hardware and Black & Decker, do not give rise to a proprietary or trust interest in the proceeds of on-sale to customers, but only to a debtor-creditor relationship in respect of such proceeds. United Hardware was impliedly authorised to sell on its own account rather than as bailee or agent for the suppliers. Clauses requiring proceeds to be kept separate after default do not establish a general trust or proprietary interest in proceeds.

Jurisdiction
Australia
Judgment Date
27 November 1995
Procedural Posture
Application (including Cross Claims) / Judgment on Principal Claim After Hearing
Outcome
Declarations refused; applicant succeeds on principal claim; no proprietary interest found for suppliers in proceeds/debts.
Legal Topics
['romalpa Clause (retention of Title)' 'implied Terms' 'receivership' 'tracing of Proceeds' 'proprietary Interests in Proceeds']
['insolvency' 'sale of Goods' 'commercial Law'] ['romalpa Clause (retention of Title)' 'implied Terms' 'receivership' 'tracing of Proceeds' 'proprietary Interests in Proceeds']

Case Brief

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Procedural Posture

Application (including Cross Claims) / Judgment on Principal Claim After Hearing

Legal Issues

  1. 1 ['Whether Makita and Black & Decker retention of title clauses give them proprietary interests in debts/monies owed to or collected by United Hardware' 'Whether, if such proprietary interest exists, there is a fund into which the respondents can trace monies.' 'Whether, on the same assumption, Makita or Black & Decker have claims against the applicant for not establishing requested funds']

Ratio Decidendi

The contractual arrangements between United Hardware and Makita, and United Hardware and Black & Decker, do not give rise to a proprietary or trust interest in the proceeds of on-sale to customers, but only to a debtor-creditor relationship in respect of such proceeds. United Hardware was impliedly authorised to sell on its own account rather than as bailee or agent for the suppliers. Clauses requiring proceeds to be kept separate after default do not establish a general trust or proprietary interest in proceeds.

Court Disposition

Declarations refused; applicant succeeds on principal claim; no proprietary interest found for suppliers in proceeds/debts.

Orders

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