Goldsbrough, Mort and Co Ltd v Tolson

The parties to this appeal were Goldsbrough, Mort and Co Ltd (appellants) and Tolson (respondent). The dispute concerned whether certain tax certificates, issued under the Meat and Dairy Produce Encouragement Acts 1893 and 1895 (Qld), passed to the appellants under mortgage deeds and a subsequent conveyance of the respondent's equity of redemption. The matter was heard by the High Court of Australia on appeal from the Supreme Court of Queensland.

The legal issues before the court were whether the right of a taxpayer to a return of taxes paid, as evidenced by certificates issued under the relevant Queensland Acts, constituted "chattels and effects" within the meaning of the mortgage deeds and the conveyance of the equity of redemption. Specifically, the court had to determine if the language used in these documents, particularly the phrase "chattels and effects which are now or may at any time during the continuance of this security be upon or belonging to the said stations," was sufficient to transfer this personal right to the appellants.

The court reasoned that the right of a taxpayer to a return of taxes under the certificates was a personal right in the nature of a chose in action. It held that this right did not pass under the conveyance of the equity of redemption, nor under the mortgage deeds, by virtue of the words "chattels and effects." The court found that in the context of the deeds, which listed numerous tangible items and specifically enumerated other incorporeal rights like compensation for improvements, the term "chattels and effects" was intended to refer to physical possessions and not to choses in action. Therefore, the appellants had failed to establish their right to the moneys represented by the certificates.

The High Court affirmed the decision of the Supreme Court of Queensland and dismissed the appeal. The respondent was therefore entitled to the moneys represented by the certificates.