Coad v Wellness Pursuit Pty Ltd (in liq)

(2009) 40 WAR 53; [2009] WASCA 68

Western Australia Court of Appeal

Built by Barristers,
For Australian Law.

See how it works

Interrogate

Catchwords

1. Corporations
2. › Voluntary administration
3. › Administrator's right of indemnity
4. › Remuneration, costs and expenses of administration
5. › Equitable lien to support right of indemnity
6. › Priority as between administrator's equitable lien and secured creditor's prior fixed charge
7. › Whether statutory scheme of priority immutable in equity
8. › Whether equity may depart from statutory scheme where unconscientious for creditor to assert statutory priority
9. › Corporations Act 2001 (Cth), ss 443D, 443E, 443F, Pt 5.3A
1. Equity
2. › Equitable lien
3. › Lien arising by implication of equity
4. › Administrator's equitable lien separate and distinct from statutory lien
5. › Priority of equitable lien over prior fixed charge
6. › Unconscionability
7. › Whether incontrovertible benefit conferred on chargeholder
1. Equity
2. › Equitable lien
3. › Salvage principle
4. › Costs incurred for benefit of all persons having interest in fund must be borne by fund
5. › Whether administrator required to do something 'above and beyond' ordinary duties

Quick Take

A voluntary administrator's equitable lien for remuneration, costs and expenses attributable to caring for, preserving and realising company assets may have priority over a prior fixed charge where the chargeholder knew of the administration, was entitled to but chose not to appoint its own receiver, and consented to or acquiesced in the administrator's work. The administrator is not required to have done something 'above and beyond' ordinary duties. Barrett J's contrary holding in Hamilton v Donovan Oates Hannaford that the equitable lien is always confined to the statutory priority position is disapproved.