Bailey and another v Angove’s PTY Limited

Bailey and another v Angove’s PTY Limited

D&D’s authority to collect payments was revocable and terminated by Angove’s notice; the contractual arrangements did not create an irrevocable authority or a constructive trust over the collected funds. The proceeds of the invoices are payable to Angove’s, not part of D&D’s insolvent estate.

Parties
Respondents: Bailey and another; Appellant: Angove’s PTY Limited
Jurisdiction
England and Wales
Judgment Date
27 July 2016
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal From Court of Appeal
Outcome
Appeal allowed
Legal Topics
Revocability of Agent's Authority, Constructive Trust, Agency Principal Relationship, Distribution of Insolvent Estates
Commercial Law Agency Law Insolvency Law Trusts Revocability of Agent's Authority Constructive Trust Agency Principal Relationship Distribution of Insolvent Estates

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Parties

Bailey and another

Respondents

Angove’s PTY Limited

Appellant

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal From Court of Appeal

Legal Issues

  1. 1 In what circumstances is an agent's authority irrevocable?
  2. 2 Does receipt of money by an agent facing imminent insolvency create a constructive trust in favour of the principal?

Ratio Decidendi

D&D’s authority to collect payments was revocable and terminated by Angove’s notice; the contractual arrangements did not create an irrevocable authority or a constructive trust over the collected funds. The proceeds of the invoices are payable to Angove’s, not part of D&D’s insolvent estate.

Court Disposition

Appeal allowed

Orders

  • Declare that the fund representing the proceeds of the invoices is payable to Angove’s.