White, in the matter of Mossgreen Pty Ltd (Administrators Appointed) v Robertson [2018] FCAFC 63

White, in the matter of Mossgreen Pty Ltd (Administrators Appointed) v Robertson [2018] FCAFC 63

The administrators were not entitled to an equitable lien over consignors' goods for the full range of expenses claimed, nor to impose the levy as a condition of return. The evidence did not demonstrate that the costs incurred were justified, proportional, or solely for the benefit of consignors, nor that alternatives had been sufficiently considered. The appeal was dismissed as the administrators had not established a right to the directions and orders they sought.

Parties
First Appellant: James Michael White, Andrew Thomas Sallway and Nicholas John Martin (in their capacities as Voluntary Administrators of Mossgreen Pty Ltd); Second Appellant: Mossgreen Pty Ltd (Administrators Appointed); Respondent: Neil Robertson
Jurisdiction
Australia
Judgment Date
19 April 2018
Procedural Posture
Appeal / Full Court Judgment
Outcome
Appeal dismissed
Legal Topics
Administrators' Duties, Equitable Lien, Return of Consigned Goods, Costs of Administration
Corporations Law Insolvency Administrators' Duties Equitable Lien Return of Consigned Goods Costs of Administration

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Parties

James Michael White, Andrew Thomas Sallway and Nicholas John Martin (in their capacities as Voluntary Administrators of Mossgreen Pty Ltd)

First Appellant

Mossgreen Pty Ltd (Administrators Appointed)

Second Appellant

Neil Robertson

Respondent

Procedural Posture

Appeal / Full Court Judgment

Legal Issues

  1. 1 Whether administrators of Mossgreen Pty Ltd (as bailees) can impose a levy on the return of consignor property
  2. 2 Whether administrators hold an equitable lien over consignor property to secure the levy

Ratio Decidendi

The administrators were not entitled to an equitable lien over consignors' goods for the full range of expenses claimed, nor to impose the levy as a condition of return. The evidence did not demonstrate that the costs incurred were justified, proportional, or solely for the benefit of consignors, nor that alternatives had been sufficiently considered. The appeal was dismissed as the administrators had not established a right to the directions and orders they sought.

Court Disposition

Appeal dismissed

Orders

  • The appeal be dismissed.
  • The matter be remitted to the primary judge to deal with the balance of the application and any other matter raised by the parties.