Cases - Match the facts/law to the name

Sale and delivery conversion case

Hollins v Fowler

Conversion by unlawful detention and exercise of control

Kuwait Airlines

Detinue case, where accession had occured to the hull slowly

McKeown v Cavalier yacht

Breach of bailment due to not taking reasonable care to prevent foreseeable risks

Conway v Cockram Motors

Inadequate bailment conditions, however knowledge was not drawn to them

Skyway Service Station

Range of bailment case, reasonable to contemplate those who died will have goods that needed to be cared for

Southern Hospital Board

Subbailment authorised on any terms, therefore bound by it

Pioneer Containers

For damage to the reversionary interest, it must not be able to be remedied

HSBC Railways

Factual assessment of when property was intended to pass based on the contract

Isaac v Unpaid Farmers

Where the seller was in possession, but only after sale had been final by delivery and possession regained as bailee

Mitchel v Jones

Mercantile agent case where the possession was authorised by owner

Jim Boyd Motors

Goods had perished, and were unable to be used for contracted purpose. Cost of reinstatment exceeded value by 3x, and it had lost the qualities which led parties to contract. Contract was void

Oldfield Asphalt

Failed gift of piano due to lack of delivery

Williams v Williams

Conditional gift of yacht couldnt be revoked as conditions were being met

Rowland v Stevenson

Established that a trust must be intended in essence, even if you dont realise it is a ‘trust’ per say

Paul v Constance

Established that resulting trust are likely to arise when either money has been given by A to B to buy a good either entirely for A or in joint ownership with A and B or when a trust doesnt exhaust the entire benefit

Westdeutsche

Plaintiff argues he had contributed value to the house through renovations, so increase in value was held on trust for him

Gilles v Keogh

Sets out the test for a constructive trust. Plaintiff failed due to a lack of reasonable expectation of interest

Lankow v Rose

Wanted to buy Trust property as a Trustee, but the beneficiaries objected. Should appoint independent trustee to oversee but dont need to sell on market

Patchett v Williams

Was both a trustee and beneficiary of business. Wanted to set up a rival business but it was a conflict of interest

Re Thomson

Used information acquired through trust activities to profit. Deemed to be trust money, but with some paid to trustees for skill/effort

Phipps v Boardman

Breach of fiduciary joint venture. Profits required to be split minus allowance for efforts of breacher

Chirnside v Fay

Trusts personally liable for not chasing up debts, charging rent appropriately, and charging too much in fees

Spencer v Spencer

Traced assets can either have claim of ownership enforced, or a lien put over for value of trust property contributed

Fosket v McKeown

Presumption of honesty that trustees will spend own money before trust money

Re Hallet

Extends Presumption of honesty; states trustees will buy assets with trust money, use own money for debts etc. Declined to be accepted in Canada for PPSA tracing

Re Oatway

Establishes the lowest intermediate balance rule

Roscoe v Winder

First in first out (spent)

Claytons case

Wife obtained trust property from husband for half of market value, deemed to have constructive knowledge of breach

Pounamu

Stated that the concern of knowing receipt is unconscionablility

McLennan

Presumption that a house is a fixture

Elitestone

Airconditioning case. Focus on degree of annexation, and purpose only so far as facts establish. Terms of agreement are irrelevant

Melluish

Statute case, object on its own weight and not reliant on surroundings for beauty

Tower Hamlets case

Showhome removed from site. Established to be a fixture as previous showhome was. Also established that Trespass to Reversion was available to mortgagee

Lockwood

9 showhomes where efforts of ‘attachment’ were for cosmetic purposes

Potton

Soil with the grass overtop. Applied an informed observer test

Queenstown Central

House was intended as a permanent dwelling, couldnt make into a chattel

Ratana

Large concrete anchors deep below ground, withdrawal of consent for them didnt make them a chattel

Lake edge

Established that a vendor is in some senses a trustee

Clarke v Ramuz

Scope of a vendors trustee duties based on a reasonable duty of care to preserve and a duty to transfer

Englewood

Entiled to income and rent free possession, as well as inconvenience compensation

Jerome

Case of agreement to purchase with clause that if a better offer was made agreement was void. Didnt give a chance to counter offer. No good faith requirements from vendors

Batchelar

Provides that ‘untenantable’ is based on the substantial impact on the ability to use/operate/enjoy the property based on the purpose of the purchase, and that it is an objective test

SDC v McClean

Agreement to sell subject to consent from relevant people. Conditions subsequent may give rise to equitable interest. Formality condition

Bevin v Smith

Right of first refusal creates an interest when an offer is made, and on triggering event only where there is sufficiently clear terms

Motorworks

Option to purchase which only came into force if the propertys were made into rental units. Conditions precedent dont give rise to equitable interest.

Palm Gardens

Purchasers were unable to sue in Trespass for damage to trees as they were no in possesion and didnt have the right to immediate possession. Lockwood might change this result now

Cousin v Wilson

Established that a reasonable time period is required for a right of first refusal exercise by prefered class of alienees. 15 days was the minimum by could be extended by circumstance

Taueki

Established that preferred class of alienees were entitled to specific, seperate notice

Logan

Sought to change status to general land to better manage and utilise the farm, wished to leave the land to wife. Was rejected as there was no evidence of impact on use

Meha

Establishes the presumption of relief on payment if only breach is non-payment

Mulholland

Several prior defaults, arbitration, had failed to fulfill obligation of redecoration. Strained relationship. Conditional offer to buy business from T’s employee (including lease). Adopted a proportionality assessment between the landlord and tenant

Strong v Hurunui Hotel

Serious breaches of lease occurred through using land not part of the lease, also issues of nuisance (consistent minor breaches), Farming a more damaging animal than lease allowed, and did not undertake fertiliser tests. Determined there was significant prejudice to landlord if renewed.

Sibrad

Sets out the key elements of a lease, being exclusive possession and certainty of term

Fatac

Pastoral ‘lease’ case. Sets out key indicators of leases, such as the ability to exclude others, maintanience and occupation obligations, the limiting of rights which a licence would imply, and the terminology used

NZ Fish and Game

Case concerns with whether it was a lease or a licence. Determined that the agreement wouldnt need to provide remedys to breaches of rights if they had lease, as they would have remedies directly. Also left uncertain whether a licencee can sue in trespass to vindicate rights

Sealink NZ

Australian case which said that licences where there is mere occupation can never sue in Trespass

Georgeski

English case which said that licences could sue third partys in trespass if necessary to vindicate contractual rights, but never the owner

Mancester Airport

Stated that indicators of easement are; classic subject matter, Intention to bind successors in title, absence of a time limit or right to revoke, common-sense assessment

Street

Timeshare in leisure complex, with clubhouse and rec facilitates ground floor and basement, Golf course and tennis court on grounds. Related company that developed the park bought property next door which they decided to turn into another timeshare. Gave rights to time share tenants, including rights to use facilities on neighbouring property

Some facilities fell into disrepair, owners trying to get out of obligation allowing neighbours to come use them. Assesses whether it is ‘capable of forming the subject matter of a grant’

Regency Villas

Vineyard where section where sold with an easement which purported to allow farming and sale of grapes. Determined that this deprived the owners of possession

Clos Farming

Mall carpark case with a parking easement allowing transitional parking which assessed the reasonable use of the entirety of land

East Freemantle

Applied the test of whether owner was deprived of exclusive possesion over the land which was subject to easement

Moncrief

Easement over the end of neighbouring driveway, blocking garage. Held he was still able to use behind, above and inside garage for storage, and that dominant land couldnt build on land. Suggests a cumulative approach to easement assessment.

Towers

Carparks of tavern subject to an ‘easement’. Court held that it was unlikely all carparks would be filled at once and so there would be enough available to tavern-goers

Marina

States that the remedy for estoppel will be the minimum equity needed to do justice

Port of London

Husband and wife promised house by mother, renovated it. When husband died mother in law tried to reclaim from widow. Was estopped and the remedy was damages only

Stratulos

Parents had intended to gift house to daughter. When they died brother claimed it should pass with the will. Daughter had been given keys, renovated into a rental, and there was evidence of clear intention throughout family that it was hers. Constructive trust imposed and house transferred

Carrol v Bates

Constructive trust was imposed over a grazing licence, as daughter had known about the licence and it would be unconscionable to defeat it

Harvey v Prangley

Option to purchase home back from scheme, competing interest defeated due to lack of caveat on an unusual interest

Emslies

Father attempting to sell home which was meant to be transferred to daughter as she had been the one to pay the mortgage. Purchaser interest was defeated as daughter exercised more control than ordinary tenant which was constructive notice to inquire.

Perkins v Purea

Because of the knowledge that McLauchlin farmed the land and his involvement with the power station development Contact should have consulted with McLauchlan or his lawyers. Certain facts will require more than reliance on the register

Mercury Geotherm

House was sold for almost half of market value, within 3 days, and then accelarated settlement. Purchaser didnt even view house.

Efstratiou

Solicitor advised that because caveat had lapsed the issue was likely resolved, and so they registered with no intention of defeating the interest

Satnam

Unregistered water easement. Land was transferred to a trust (without intention to defeat) and then later on the trust decided to revoke easement. Held that in personam applied as the transfer was made with knowledge and intention to honour the easement, so it would be unconscionable to defeat

Potts v Anderson

Property was purchased with money from breach of trust, and so inpersonam applied.

Smith v Hugh Watt Society

Sets out requirements of inpersonam, being unconscionability and known action

Dollars and Sense

Man died, leaving behind two carvings with parents. If they were chattels then they would pass to partner. However they were determined to be taonga and so Tikanga governed, requiring parents to act as guardians for them.

Biddle v Pooley

Bank account promised in will, money was moved to a new account for better interest rates. Held that the thing had changed only in name and form, and remained in substance the same so had not adeemed

Re Dorman

Work / Service provided to step father, did not go beyond the ordinary expecations of friend/family life. (Although in this case only quantum was appealed and so claim was allowed)

Re Welch

Determined that the support part of ‘provision of adequate mainatence and support’ meant a recognition of belonging within the family.

Williams v Aucutt

Man died and left large estate mostly made up of life insurance payment to new partner, with nothing left to widow, and minimal to his mother and his step children. Court held Widow was entitled to more as the policy accumulated during the relational, however the step children and mother were excluded as they werent being maintained

Re Hilton

Mortgage with high application fee in exchange for the interest being waived was not oppressive, as it was signed by commercial entity with legal advice

Greenbank v Haas

Established that an industry standard can still be oppressive, and it is the Courts jurisdiction to determine this

GE Custodians

Upon demand loan was exercised, then appointed receivers 2 hours after as it was not repaid. Court held this was not oppressive, entitled to exercise on demand loan and time allowed is to pay from cash, not obtain new loans

ANZ v Gibson

‘All obligations owed to you’ is presumed to mean you the true owner. Registration of this doesnt acquire indefeasible title over loan agreements signed fraudulently, only fixed sums in mortgage. Obiter about where the name is slightly varied

Westpac v Clarke

Option to purchase confers a right to discharge mortgages

Coltart

Establishes that where a mortgage term is unconscionable, penal, or repugnant it may be a clog. A classic clog is an option to purchase. Case was concerned with a company that gave a right to first refusal over sheepskin (which was a byproduct) with mortgage. Woolbrokers company, was not impacted much by this and so it wasnt a clog.

Kreglinger

Free public house became a bound public house due to mortgage term. Held that this infringing ability to get back thing mortgaged and so it became a clog once the mortgage was discharged

Noakes v Rice

House of Lords hold that the option to enter partnership is enforceable despite repayment of mortgage. Held that true substance of contract was concerned with this option for partnership. Mortgage was secondary, only existed as security for loan given in exchange for option to enter partnership

Reeve v Lisle

Mortgage was sold to second mortgagee, who contracted in an option to purchase. Tried to argue it was a distinct transaction seperate in time however the Court held it was in substance part of the mortgage and a clog

Lewis v Frank Love

No intention from either party for a security interest. Intention was that where there was no payment there would be no contract. Focus on what is purported to be done by transaction, and the supply agreement made no contemplation for such circumstances

JSB

Lease of horse created an interest which allowed a perfected security to attach to it as ‘after acquired property’. Reclaiming the horse was contrary to security interest

NZBloodstock

Lease of portable building for over a year by someone who was regularly engaged in the business. Forgot to perfect and so it became subject to perfected security interest with priority

Portacom

Error in the name of the debtor was held to be seriously misleading

Polymers, s 149 PPSA

Error in the financing statement which classed interest as being over all present and after acquired goods, which was overly broad. Court held this wasnt seriously misleading as it still served to give notice.

Service Foods

Bulldoozer was listed under goods; other rather than goods; motor vehicles. Held to be seriously misleading as someone adopting proper search wouldnt be able to find

Partners Finance

Mere possession allowed a security interest to attach. Held that this bound all except the true owner. Unsure whether this applys in New Zealand as PPSA doesnt codify nemo dat, and NZ Bloodstock it was the lease that created the security interest

Gray

Sale of 4000 heifers to raise money to finance farm purchases. Claimed he was shifting from being a dairy farmer to an ‘entrepreneur’ property investor. Held that you couldnt change ordinary course of business to fit transaction within, atleast not without lender consent

StockCo

Needed to be a sale for ordinary course of business exception to apply, held that an agreement to sell was a ‘sale’ for purposes of PPSA

Spittlehouse