Lift Capital Partners Pty Ltd (in liq) v Merrill Lynch International

In the case of Lift Capital Partners Pty Ltd (in liq) v Merrill Lynch International, the liquidators of Lift Capital Partners sought to recover funds from Merrill Lynch International, alleging breaches of fiduciary duty, negligence, and unjust enrichment. The dispute involved the interpretation of various documents, including a deed appointing an attorney, a securities lending agreement, and a mortgage. The case was heard by the Federal Court of Australia.

The court was required to determine the scope of the attorney's authority under the deed, whether the securities lending agreement complied with the Income Tax Assessment Act 1936 (Cth), and the effect of the mortgage provisions. The key issues included the validity of the deed's attachment, the nature of the securities lending transaction, and the enforceability of the mortgage.

The court found that the attorney's authority to execute the deed was limited to the terms specified in the deed itself, and the absence of a physical annexure rendered the deed incomplete. Regarding the securities lending agreement, the court held that the transaction did not constitute a "lending" compliant with the Income Tax Assessment Act 1936 (Cth) as the borrower was not obliged to restore identical shares. The court also concluded that the rule against fettering the equity of redemption was not absolute but required a showing of unconscionability, which was not present in the circumstances of this case.

The court ordered that the claims against Merrill Lynch International be dismissed.