Craigie v Champion Mortgage Services Pty. Ltd

The proceeding concerned an application for leave to appeal from a decision of the Supreme Court of New South Wales. The applicant, Craigie, was the mortgagor of a property used as a fish hatchery for the supply of fish to pet shops and aquariums. The respondent, Champion Mortgage Services Pty. Ltd, was the mortgagee. Craigie sought possession of the property, which Champion Mortgage Services Pty. Ltd had taken steps to recover.

The central legal issue before the Court of Appeal was whether the operation conducted on the property constituted a "farming operation" for the purposes of the *Farm Debt Mediation Act 2014* (NSW). This determination was critical as it would dictate whether Craigie was entitled to the protections afforded by the Act, including mandatory farm debt mediation prior to the mortgagee exercising its rights.

The Court of Appeal, in dismissing the application for leave to appeal, reasoned that the definition of "farming operation" under the Act was not met by the activities undertaken at the property. The Court considered that while the breeding and sale of fish involved elements of husbandry, the primary purpose and nature of the business, supplying fish to commercial outlets rather than for agricultural production in the traditional sense, did not align with the legislative intent of the *Farm Debt Mediation Act*. The Act was intended to protect those engaged in primary production for agricultural purposes, and the hatchery's commercial focus on supplying pet shops and aquariums fell outside this scope.

Consequently, the application for leave to appeal was dismissed with costs.