Heartwood Nominees Pty Ltd v Oakleigh Acquisitions Pty Ltd (in Liq)

In the case of Heartwood Nominees Pty Ltd v Oakleigh Acquisitions Pty Ltd (in Liq), the dispute involved a mortgagee sale of land. The matter was heard by the Supreme Court of Western Australia. Heartwood Nominees, the mortgagee, sought an interlocutory injunction to prevent Oakleigh Acquisitions from proceeding with the sale of land by public tender, claiming it was not authorised under the relevant legislation. The third plaintiffs also sought to establish a constructive trust over the funds held in a trust account by Oakleigh Acquisitions, due to an overdrawing of the account.

The legal issues before the court were whether the sale by public tender was permissible under the Transfer of Land Act and whether damages would be an adequate remedy for Heartwood Nominees if the sale proceeded. Additionally, the court had to consider the adequacy of the plaintiffs' undertaking as to damages and whether the third plaintiffs could trace the funds in the trust account to establish a constructive trust.

The court held that the Transfer of Land Act was not a code and thus the sale by public tender was not precluded by the act. The court found that damages would not be an adequate remedy for Heartwood Nominees, as the sale would result in a loss of the security for the mortgage. The court also found that the third plaintiffs could not trace the funds in the trust account to establish a constructive trust due to the inability to trace the funds. Ultimately, the court granted the interlocutory injunction preventing the sale by public tender.

The court ordered that Oakleigh Acquisitions be restrained from proceeding with the sale of the property by public tender, pending further orders. The court also ordered that the plaintiffs provide an undertaking as to damages in the event the injunction was discharged.