State of New South Wales v Commonwealth Bank of Australia [2001] NSWSC 1067

State of New South Wales v Commonwealth Bank of Australia [2001] NSWSC 1067

The subrogation rights (if any) conferred on the Property Services Council were not automatically vested in the Crown upon abolition of the Council, due to the absence of any statutory provision effecting such a transfer. Consequently, the State of New South Wales is unable to bring proceedings based on subrogation rights originally accrued to the Council. Question A and B are answered 'No'.

Parties
Plaintiff: State of New South Wales; First Defendant: Commonwealth Bank of Australia; Second Defendant: Star City Pty Limited
Jurisdiction
Australia
Judgment Date
24 October 2001
Procedural Posture
Civil / Preliminary Questions in the Equity Division, Commercial List; Ruling on Separate Questions and Notice of Motion
Outcome
Questions A and B answered 'No'. Summons cannot be sustained by the State of New South Wales. No final orders; reasons published and matter stood over for mention. Notice of motion to strike out second defendant's claim declined (would have been dismissed had it been necessary).
Legal Topics
Statutory Corporations, Crown Proceedings, Subrogation, Rights and Liabilities Vesting, Money Had and Received, Restitution for Mistaken Payments, Casino Operation and Gaming Contracts, Interpretation of 'consideration'

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Parties

State of New South Wales

Plaintiff

Commonwealth Bank of Australia

First Defendant

Star City Pty Limited

Second Defendant

Procedural Posture

Civil / Preliminary Questions in the Equity Division, Commercial List; Ruling on Separate Questions and Notice of Motion

  1. 1 Whether, after abolition of the Property Services Council and repeal of relevant statutes, rights of subrogation vested in the Crown and can be enforced by the State of New South Wales
  2. 2 Meaning and enforceability of subrogation rights in the statutory context
  3. 3 Whether the claim in restitution against the casino can succeed under current gaming and contract law

Ratio Decidendi

The subrogation rights (if any) conferred on the Property Services Council were not automatically vested in the Crown upon abolition of the Council, due to the absence of any statutory provision effecting such a transfer. Consequently, the State of New South Wales is unable to bring proceedings based on subrogation rights originally accrued to the Council. Question A and B are answered 'No'.

Court Disposition

Questions A and B answered 'No'. Summons cannot be sustained by the State of New South Wales. No final orders; reasons published and matter stood over for mention. Notice of motion to strike out second defendant's claim declined (would have been dismissed had it been necessary).

Orders

  • I publish these reasons and stand the matter over for mention in my list at 9.50 am on 15 November 2001.