Clark v Gallop Reserve Pty Ltd

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SUPREME COURT OF QUEENSLAND

CITATION:

Clark v Gallop Reserve Pty Ltd [2016] QCA 146

PARTIES:

STEPHEN ROSS CLARK
(appellant)
v
GALLOP RESERVE PTY LTD

ACN 010 759 421
(respondent)

FILE NO/S:

Appeal No 40 of 2016
SC No 13441 of 2010

DIVISION:

Court of Appeal

PROCEEDING:

General Civil Appeal

ORIGINATING COURT:


Supreme Court at Brisbane – [2015] QSC 353

DELIVERED ON:

7 June 2016

DELIVERED AT:

Brisbane

HEARING DATE:

31 May 2016

JUDGES:

Gotterson and Philip McMurdo JJA and Atkinson J
Separate reasons for judgment of each member of the Court, each concurring as to the orders made

ORDERS:

1.   Appeal dismissed.

2.   Appellant pay the respondent’s costs of the appeal.

CATCHWORDS:

CONTRACTS – GENERAL CONTRACTUAL PRINCIPLES – CONSTRUCTION AND INTERPRETATION OF CONTRACTS – INTERPRETATION OF MISCELLANEOUS CONTRACTS AND OTHER MATTERS – where the respondent is the transferee of a loan agreement between a bank and a third party to which the appellant was guarantor – where the bank obtained default judgment against the appellant in 2011 – where the bank and the respondent entered a deed of transfer in April 2013 transferring to the respondent all present and future money owing to the bank “under or in connection with” the loan agreement – where the respondent sought the court’s leave to enforce the default judgment against the appellant pursuant to r 799 of the Uniform Civil Procedure Rules 1999 (Qld) – where the appellant contended that the default judgment was not assigned to the respondent – where the learned primary judge held that the phrase “in connection with” was sufficiently wide to include the judgment and granted leave to enforce the judgment – where the appellant contends the learned trial judge erred in construing the deed – whether, on the correct construction of the deed, the phrase “under or in connection with” includes the default judgment

Fraser v The Irish Restaurant & Bar Company Pty Ltd[2008] QCA 270, cited
Linprint Pty Ltd v Hexham Textiles Pty Ltd (1991) 23 NSWLR 508, cited
Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589; [1981] HCA 45, cited
Westpac Banking Corporation v Clark & Ors; ex parte Gallop Reserve Pty Ltd
[2015] QSC 353, affirmed

COUNSEL:

N H Ferret for the appellant
M T de Waard for the respondent

SOLICITORS:

Broadley Rees Hogan for the appellant
Rostron Carlyle for the respondent

  1. GOTTERSON JA:  I agree with the orders proposed by Philip McMurdo JA and with the reasons given by his Honour.

  2. PHILIP McMURDO JA:  The original plaintiff in this proceeding, Westpac Banking Corporation, obtained a default judgment against the first defendant, Mr Clark, for an amount in excess of $800,000.  Mr Clark had not defended Westpac’s claim, which was for money owing under a guarantee.

  3. The respondent to this appeal, Gallop Reserve Pty Ltd, claims to be the creditor under this judgment, on the basis of an assignment to it from Westpac. To enforce the judgment, it required the court’s leave because there…

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Details
Case
[2016] QCA 146
Decision Date

CaseChat Overview and Summary

The appeal by the appellant, Clark, against the decision of the Primary Judge in the District Court of Queensland was focused on the interpretation of a deed of transfer involving a loan agreement. The appellant was a guarantor for a loan agreement between a bank and a third party. After the bank obtained a default judgment against the appellant in 2011, it subsequently entered into a deed of transfer with the respondent, Gallop Reserve Pty Ltd, in April 2013. This deed transferred all present and future monies owing to the bank "under or in connection with" the loan agreement to the respondent. The respondent sought leave to enforce the default judgment against the appellant, relying on the terms of the deed. The appellant argued that the default judgment was not assigned to the respondent, challenging the primary judge’s interpretation of the deed.

The central legal issue before the court was whether the phrase "under or in connection with" in the deed of transfer included the default judgment obtained by the bank against the appellant. The appellant contended that this phrase did not encompass the default judgment, thereby arguing that the respondent could not enforce it. Conversely, the primary judge held that the phrase was broad enough to include the default judgment and granted the respondent leave to enforce it against the appellant. The court's task was to determine whether this interpretation was correct.

The court found that the primary judge's interpretation of the deed was sound. The phrase "under or in connection with" was deemed sufficiently wide to encompass the default judgment, reflecting the intention of the parties to transfer all rights and obligations associated with the loan agreement to the respondent. The court held that the primary judge correctly interpreted the deed, and thus the appeal was dismissed. Consequently, the appellant was ordered to pay the respondent's costs of the appeal.

Orders

Orders of the court

1. Appeal dismissed.

2. Appellant pay the respondent’s costs of the appeal.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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