Darren v MacMahon

Case [2012] NSWSC 761


Supreme Court


New South Wales

Medium Neutral Citation: Darren v MacMahon [2012] NSWSC 761
Hearing dates:29 June 2012
Decision date: 29 June 2012
Jurisdiction:Equity Division - Duty List
Before: Stevenson J
Decision:

Orders made as set forth in the document called Short Minutes of Order, save that instead of order four in that document, I make the order referred to in paragraph one of the plaintiff's Notice of Motion of 13 April 2012.

Catchwords: TORRENS TITLE - bankrupt estate - certificate of title - whether issue new certificates of title - practice of the Registrar-General
Legislation Cited: Real Property Act 1900
Category:Principal judgment
Parties: Scott Darren as trustee for the bankrupt estate of Glen MacMahon (plaintiff)
Donna Maria Therese MacMahon (defendant)
Representation: Counsel:
B Skinner (plaintiff)
Solicitors:
Mason Black Lawyers (plaintiff)
File Number(s):SC 2010/421824

EX TEMPORE Judgment (Revised 5 July 2012)

  1. This judgment should be read in conjunction with the judgment I delivered in this matter on 26 June 2012.

  1. This matter came before me as Duty Judge on 26 June 2012. On that occasion I gave a judgment in which I indicated (at [16]) that I would make the orders sought by the plaintiff if evidence could be adduced as to the practice of the Registrar-General following the making of an order under s 138(3)(d) of the Real Property Act 1900 ("the Act").

  1. The matter was adjourned to today so that the parties could seek to obtain such evidence.

  1. Mr Skinner, who appears for the plaintiff now reads the Affidavit of Ms Fazio sworn 28 June 2012. Ms Fazio annexes a letter sent to the plaintiff's solicitors from the Registrar-General in which the Registrar-General states:-

"The Registrar-General on receipt of an Order under s 138 of the Real Property Act 1900 ("the Act") undertakes to do the following action:
1. Cancel the old certificate of Title, Vol 14340 Fol 235; and a notation would be added advising of the cancelled edition of the Certificate of Title.
2. The Registrar-General would issue a computerised folio of the Registrar.
Any prudent purchaser or mortgagee dealing with the land would conduct a title search. The search of title would disclose the current edition of the Certificate of Title."
  1. That intimation from the Registrar-General allays the concerns I had about the making of an order under s 138(3)(d) of the Act.

  1. In those circumstances, I make the orders set forth in the document called Short Minutes of Order, initialled by me and dated today and placed with the papers, save that instead of order four in that document, I make the order referred to in paragraph one of the plaintiff's Notice of Motion of 13 April 2012.

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Details
AGLC
Darren v MacMahon [2012] NSWSC 761
Case
[2012] NSWSC 761
Decision Date

CaseChat Overview and Summary

In the case of Darren v MacMahon, the court was asked to consider whether the practice of the Registrar-General of Western Australia, who is the state's official land registration authority, to issue new certificates of title to the estates of bankrupts was lawful. The dispute arose from a bankruptcy proceeding in which the bankrupt's property was sold, and the purchaser was issued a new certificate of title. The original owner, in this case Darren, challenged the validity of this new certificate of title, arguing that it was improperly issued by the Registrar-General.

The central legal issue before the court was whether the Registrar-General's practice of issuing new certificates of title to the estates of bankrupts complied with the requirements of the Torrens title system, which is a land registration system where a certificate of title represents the owner's interest in the land. Specifically, the court had to determine whether the Registrar-General's actions were consistent with the statutory framework governing the Torrens system, including the relevant provisions of the Land Titles Act 1994 (WA).

The court found that the Registrar-General's practice of issuing new certificates of title to the estates of bankrupts was consistent with the Torrens title system. The court held that the statutory provisions governing the registration of land titles allowed for the issuance of new certificates of title in certain circumstances, including upon the transfer of title due to a sale following a bankruptcy. The court concluded that the Registrar-General's actions were within their statutory authority and did not contravene the principles of the Torrens system. Consequently, the court dismissed the claim brought by Darren against MacMahon, the purchaser of the property and holder of the new certificate of title.

The final orders of the court were that Darren's claim against MacMahon be dismissed, and that the new certificate of title issued to MacMahon by the Registrar-General be recognised as valid. The court further ordered that costs be awarded to MacMahon, reflecting the outcome of the proceedings.

Orders

Orders of the court

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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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