SKELLERUP ROTOCURE LIMITED v CHADWICK INDUSTRIES PTY LTD [1990] NSWCA 166

SKELLERUP ROTOCURE LIMITED v CHADWICK INDUSTRIES PTY LTD [1990] NSWCA 166

The charge was not restricted to debts already in existence at the time of execution. The intention of the parties and the language of the charge cover debts and proceeds deriving from claims, settlements, or proceedings related to the contracts scheduled in the deed, including the contract sum arising from later settlement. To limit the charge only to existing liquidated debts would defeat the parties' purpose.

Parties
Appellant: Skellerup Rotocure Limited; Respondent: Chadwick Industries Pty Ltd
Jurisdiction
Australia
Judgment Date
04 October 1990
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Fixed Charges, Interpretation of Deeds, Security Interests Over Choses in Action
Commercial Law Secured Transactions Fixed Charges Interpretation of Deeds Security Interests Over Choses in Action

Case Brief

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Parties

Skellerup Rotocure Limited

Appellant

Chadwick Industries Pty Ltd

Respondent

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether a fixed charge can attach to debts not in existence at the time of the deed
  2. 2 Proper construction of 'debts' under the deed of charge and its schedule
  3. 3 Whether the settlement sum constitutes a debt within the meaning of the charge

Ratio Decidendi

The charge was not restricted to debts already in existence at the time of execution. The intention of the parties and the language of the charge cover debts and proceeds deriving from claims, settlements, or proceedings related to the contracts scheduled in the deed, including the contract sum arising from later settlement. To limit the charge only to existing liquidated debts would defeat the parties' purpose.

Court Disposition

Appeal allowed

Orders

  • Judgment of Young J set aside
  • Plaintiff to bring in short minutes of order