Barrymores Pty Ltd v Harris Scarfe Ltd (Administrators Appointed) (Receivers & Managers Appointed)

Barrymores Pty Ltd sought summary judgment against Harris Scarfe Ltd (Administrators Appointed) (Receivers & Managers Appointed) and others in the Supreme Court of Western Australia. Barrymores was a supplier of childrenswear to Harris Scarfe, which had been placed into administration and receivers and managers appointed. Barrymores sought to recover goods and/or payment for goods supplied to Harris Scarfe under a retention of title clause. The court found that Barrymores did not require leave to proceed against the receivers but only against the company in liquidation. The court granted leave for Barrymores to proceed against the receivers. The court found that Barrymores had discharged its onus of proving that it had supplied goods to Harris Scarfe which had not been paid for. The court found that Barrymores' retention of title clause had been incorporated into the contract between the parties by the regular course of dealing between them. The court found that the receivers were liable in conversion for dealing with the goods beyond their authority. The court found that the receivers' undertaking to hold the proceeds of sales of goods in a separate account constituted a fiduciary obligation to account for the proceeds as if they were trustees. The court granted summary judgment for Barrymores against the receivers for the return of the unsold goods and/or the proceeds of sale of the goods.