AAGG Developments Pty Ltd v Saafin Constructions Pty Ltd

[2020] VSC 768

IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE

COMMON LAW DIVISION

PROPERTY LIST

S ECI 2020 01362

AAGG DEVELOPMENTS PTY LTD (ACN 627 341 128) AS TRUSTEE OF THE AAGG DEVELOPMENTS TRUST	Plaintiff
v
SAAFIN CONSTRUCTIONS PTY LTD (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION) (ACN 097 500 751) & ORS (according to the attached Schedule)	Defendants

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JUDGE:	Derham AsJ
WHERE HELD:	Melbourne
DATE OF HEARING:	17 November 2020
DATE OF JUDGMENT:	17 November 2020
CASE MAY BE CITED AS:	AAGG Developments Pty Ltd v Saafin Constructions Pty Ltd & Ors
MEDIUM NEUTRAL CITATION:	[2020] VSC 768

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PROPERTY LAW —CAVEATS – Application for removal of a caveat lodged on title to land – Whether caveators have established a prima facie case for an interest in the land arising under an implied, resulting of constructive trust – Whether the balance of convenience favours retention or removal of the caveat – Other proceedings in the court in which the individual defendants have been given leave to bring a derivative claim in the name of and on behalf of the corporate defendant for a declaration that the plaintiff holds the land as constructive trustee for the corporate defendant – Relevant individual defendants have a prima facie case to sustain the interest in the land claimed in unusual circumstances, being a derivative claim made by the individual defendants on behalf of and in the name of the corporate defendant for a declaration of an interest arising under a constructive trust and the re-transfer of the land by the plaintiff to the corporate defendant – Appeal pending against the grant of leave to the individual defendants to bring derivative claim – Whether appropriate to make final orders or interim orders – Interim orders appropriate pending determination of the Appeal – Piroshenko v Gosjman, (2010) 27 VR 489; Goldstraw v Goldstraw [2002] VSC 491; Australian Broadcasting Corporation v O’Neill (2006) 227 CLR 57, 82; Carbon Black Pty Ltd v Launer [2015] VSCA 126; El-Saafin & Anor v Franek & Ors (No 4) [2020] VSC 389, referred to.

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APPEARANCES:	Counsel	Solicitors
For the Plaintiff	Mr M Clarke QC	Mark J Halse
For the First Defendant	No Appearance
For the Second to Fourth Defendants	Mr I Upjohn QC	Hicks Oakley Chessell Williams
For the Fifth Defendant	No Appearance (the usual letter was received)

TABLE OF CONTENTS

Introduction........................................................................................................................................ 1

Background......................................................................................................................................... 1

Applicable Law................................................................................................................................... 2

Submissions........................................................................................................................................ 3

Consideration...................................................................................................................................... 5

Conclusion........................................................................................................................................... 7

HIS HONOUR:

Introduction

1. The plaintiff (AAGG) is registered proprietor of the land situate at and known as 65-67 Arden Street, North Melbourne, being the land described in Certificate of Title Volume 08614 Folio 340 (the Land). 

1. AAGG applies pursuant to section 90(3) of the Transfer of Land Act 1958 (TLA) to have removed caveat numbered AR286477C lodged on the title to the Land (the Caveat) by the first to the fourth defendants on 26 July 2018, and to restrain the second to the…