Rubis v Garrett as Trustee of the Andrew Garrett Family Trust Trading as Dynamic Commercial Workforce Solutions (No 2) [2018] FCA 2011

Rubis v Garrett as Trustee of the Andrew Garrett Family Trust Trading as Dynamic Commercial Workforce Solutions (No 2) [2018] FCA 2011

The first respondent’s assertion of a mere equity did not create any valid legal, equitable or security interest in the applicants’ personal property. Registrations made accordingly were false and vexatious. The Registrar failed to exercise his statutory duties to prevent and remove such registrations. The purported appointment of the first respondent as managing controller was invalid due to bankruptcy status and lack of entitlement.

Parties
Applicant: Robert Voldemars Rubis; First Respondent: Andrew Morton Garrett as Trustee of the Andrew Garrett Family Trust Trading as Dynamic Commercial Workforce Solutions; Second Respondent: The Registrar, Personal Property Securities Register
Jurisdiction
Australia
Judgment Date
30 November 2018
Procedural Posture
Application for Removal of PPSR Registrations and Related Declarations / Final Hearing and Orders
Outcome
Declarations and injunctive relief granted; registrations to be removed; orders for costs; referral to Commonwealth Director of Public Prosecutions.
Legal Topics
Personal Property Securities Register, Vexatious Litigation, Security Interests, Bankruptcy, Registrar Duties
Commercial Law Corporations Law Personal Property Securities Personal Property Securities Register Vexatious Litigation Security Interests Bankruptcy Registrar Duties

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Parties

Robert Voldemars Rubis

Applicant

Andrew Morton Garrett as Trustee of the Andrew Garrett Family Trust Trading as Dynamic Commercial Workforce Solutions

First Respondent

The Registrar, Personal Property Securities Register

Second Respondent

Procedural Posture

Application for Removal of PPSR Registrations and Related Declarations / Final Hearing and Orders

Legal Issues

  1. 1 Whether the first respondent holds a valid security interest under the Personal Property Securities Act 2009 (Cth)
  2. 2 Whether the Registrar of Personal Property Securities Register properly exercised statutory duties to prevent and remove vexatious registrations
  3. 3 Whether alleged security interests based on mere equity can constitute a security interest

Ratio Decidendi

The first respondent’s assertion of a mere equity did not create any valid legal, equitable or security interest in the applicants’ personal property. Registrations made accordingly were false and vexatious. The Registrar failed to exercise his statutory duties to prevent and remove such registrations. The purported appointment of the first respondent as managing controller was invalid due to bankruptcy status and lack of entitlement.

Court Disposition

Declarations and injunctive relief granted; registrations to be removed; orders for costs; referral to Commonwealth Director of Public Prosecutions.

Orders

  • Declaration that first respondent does not hold any valid security interest under the Act entitling him to lodge financing statements.
  • Documents entitled Notice of Crystallisation of Charge/Notice of Seizure of Collateral and amendments signed by the first respondent are invalid and of no force or effect.