Medium Neutral Citation: Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20
Hearing dates: 7 December 2015
Decision date: 24 February 2016
Before: Gleeson JA
Leeming JA
Emmett AJA
Decision:
1. Substitution motion Dismissed.
2. Appellant ordered to pay the respondent’s costs of the substitution motion.
Catchwords: EQUITY - general principles – assignments in equity – substitution motions - Bankruptcy Act – whether bankrupt has power to appoint receiver – whether assignment beyond Power – whether causes of action were assignable
Legislation Cited: Bankruptcy Act 1966 (Cth), ss 5, 27, 58, 115, 116, 178, 179
The Commonwealth Constitution, s 77
Corporations Act 2001 (Cth), s 420
Jurisdiction of Courts (Cross Vesting) Act 1987 (Cth), ss 3, 4, 6
Trade Practices Act 1974 (Cth), s 87
Cases Cited: CJ Maloney Pty Ltd v Noonan [2011] NSWSC 242
Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2013] NSWCA 35
Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2014] NSWCA 34
Meriton Apartments Pty Ltd v Industrial Court of New South Wales [2008] FCAFC 172
Pritchard v Race Cage Pty Ltd (1997) 72 FCR 203
Project 28 Pty Ltd (formerly Narui Gold Coast Pty Ltd) v Tim Barr Pty Ltd [2005] NSWCA 240
Radio Corporation Pty Ltd v Bear (1961) 108 CLR 414
Re Colorado Products Pty Ltd [2014] NSWSC 789
Re Pollitt; Ex Parte Minor [1893] 1 QB 455
Rickard Constructions Pty Ltd v Moretti Pty Ltd [2004] NSWSC 1041
Scott v Bagshaw [2000] FCA 816
South Australian Management Corporation v Sheahan (1995) 16 ACSR 45
Trendex Trading Corporation v Credit Suisse [1982] AC 679
Truthful Endeavour Pty Ltd v Condon (Trustee), in the matter of Rayhill (Bankrupt) [2015] FCAFC 70
Zdrilic v Hickie [2015] FCCA 2882
Category: Procedural and other rulings
Parties: John Mateljan (Appellant)
HTT Huntley Heritage Pty Ltd (in its own and as Trustee of the Huntley Trust) (Respondent)
Representation:
Counsel:
A C Harding (Respondent)
Solicitors:
S Zdrilic (with leave) (Appellant)
K & L Gates (Respondent)

File Number(s): 2012/156726
Publication restriction: Nil
Decision under appeal

Court or tribunal:

Supreme Court of New South Wales

Jurisdiction:

Equity Division

Citation:

[2012] NSWSC 382

Date of Decision:

20 April 2012

Before:

Stevenson J

File Number(s):

2007/254173

Judgment

THE COURT: By notice of motion filed on 3 June 2015 (the Substitution Motion), as amended on 20 November 2015, Mr John Mateljan seeks an order that he be substituted for Land Enviro Corp Pty Ltd (LEC) as the appellant in proceedings 2012/156726 in this Court (the Appeal Proceedings). The Appeal Proceedings relate to orders made on 27 April 2012, for reasons published on 20 April 2012,[1] by a judge of the Equity Division (the Primary Judge) in proceedings (the Equity Proceedings) brought by LEC, Mr Sam Zdrilic, Mrs Amy Zdrilic and Amy Holdings Pty Ltd (Amy Holdings) against HTT Huntley Heritage Pty Ltd (HTT

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Mateljan v HTT Huntley Heritage Pty Ltd

Details

AGLC: Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20
Case: [2016] NSWCA 20
Decision Date: 24 February 2016

CaseChat Overview and Summary

In *Mateljan v HTT Huntley Heritage Pty Ltd*, the Full Court of the Supreme Court of New South Wales considered a substitution motion brought by the appellant. The dispute concerned the assignability of certain causes of action, particularly in the context of bankruptcy.

The primary legal issue before the Court was whether the appellant, as a bankrupt, possessed the power to appoint a receiver, and whether the causes of action sought to be assigned were legally assignable. This involved an examination of the implications of bankruptcy on the bankrupt's ability to deal with their property and rights, and the principles governing the assignment of choses in action.

The Court reasoned that the *Bankruptcy Act 1966* (Cth) vests the property of a bankrupt, including their causes of action, in the trustee. Consequently, a bankrupt generally lacks the power to assign such causes of action. The Court found that the proposed assignment was beyond the appellant's power and that the causes of action in question were not assignable in equity in the manner attempted.

The Court ordered that the substitution motion be dismissed and that the appellant pay the respondent’s costs of the motion.

Orders

Orders of the court

1. Substitution motion Dismissed.

2. Appellant ordered to pay the respondent’s costs of the substitution motion.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

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Citations

Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20

Most Recent Citation

Pentridge Village Pty Ltd (in liq) v Capital Finance Australia Ltd [2018] VSC 633

Cases Citing This Decision

Scott Pascoe as Trustee of the Bankrupt Estates of Peter Voukidis (deceased) and Kathy Voukidis v Christos Voukidis [2025] NSWSC 398
Citation 1 (Para 16)

…ry adverse effect on the title of’ the [t]rustee is a matter in bankruptcy”: Mateljan v HTT Huntley Heritage Pty Ltd (2016) 111 ACSR 277; [2016] NSWCA 20 at [26], citing Scott v Bagshaw (2000) 99 FCR 573; [2000] FCA 816 at [20]. Thus, the making of an order that would have a necessary adverse effect on the title o…
Docherty v Porter, in the matter of Docherty (Bankrupt) [2021] FCA 1227
Citation 2 (Para 15)

…The New South Wales Court of Appeal in Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20; 111 ACSR 277 was alert to the difficulty of pinning down the interaction between the Cross-vesting Act and s 27 post-1996, noting at [27]: Although s 27 uses the language of “exclusive” jurisdiction and is an exercise o…
Miles v Amos [2021] NSWSC 38
Citation 3 (Para 529)

…nally, the Court of Appeal (Gleeson and Leeming JJA and Emmett AJA) wrote in Mateljan v HTT Huntley Heritage Pty Ltd (2016) 111 ACSR 277 at 287 [42]; [2016] NSWCA 20 at [42]:…
Jin Niu Investments Pty Ltd v Wang [2019] NSWSC 1697
Citation 4 (Para 20)

…he trustee and engage the jurisdiction in bankruptcy within the meaning of s 27 of the Bankruptcy Act : see Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20, at [26].…
Montgomery v Porter [2019] NSWSC 1524
Citation 5 (Para 23)

…s; see also Truthful Endeavour at [50]-[61]; and Mateljan v HTT Huntley Heritage Pty Ltd (in its own right and as trustee of the Huntley Trust) [2016] NSWCA 20; (2016) 111 ACSR 277 ( Mateljan ) – the only relevant issue here for determination is whether I am satisfied that in the particular circumstances of this p…
Preston v Diaspora Holdings Pty Ltd; Diaspora Holdings Pty Ltd v Owners Corporation of Strata Plan 68608 [2019] NSWSC 651
Citation 6

…hority by which I am bound. The question has been alluded to by the Court of Appeal recently in Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20 ; (2016) 111 ACSR 277 in terms that did not cast doubt on the conclusions in Truthful Endeavour (see at [27]).…
Robert Whitton as Trustee in Bankruptcy Estate of Steven Leonard Watton v Watton [2018] NSWCA 277
Citation 7 (Para 27)

…tter’, within the meaning of s 6 of the Jurisdiction of Courts (Cross-Vesting) Act 1987 (Cth): see eg Mateijan v HTT Huntley Heritage Pty Ltd (2016) 111 ACSR 277 at [27] per Gleeson and Leeming JJA and Emmett AJA. In the absence of special reasons and notice to the Attorneys-General, as required by s 6(3)-(4) of the C…
Pentridge Village Pty Ltd (in liq) v Capital Finance Australia Ltd [2018] VSC 633
Citation 8 (Para 1)

…WC Payments Pty Ltd v Commonwealth Bank of Australia [2014] VSC 207, [62] (Elliott J). See also Mateljan v HTT Huntley Heritage Pty Ltd (2016) 111 ACSR 277 [42] (Gleeson and Leeming JJA and Emmett AJA). [83] UTSA Pty Ltd (in liq) v UltraTune Australia Pty Ltd [1997] 1 VR 667, 685 (Hansen J).…
Fokas v Mansfield [2017] NSWCA 231
Citation 9 (Para 16)

…[2014] VSCA 248; Truthful Endeavour Pty Ltd v Condon (2015) 233 FCR 174; [2015] FCAFC 70; (2015) 233 FCR 174; Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20; (2016) 111 ACSR 277; and Baykal v Van Der Velde as Trustee for Bankrupt Estate of Tandogan [2017] NSWSC 36).…
Land Enviro Corp Pty Ltd (In Liq) v HTT Huntley Heritage Pty Ltd [2017] NSWCA 207
Citation 10 (Para 6)

…The subsequent events leading up to the present motion are summarised in the decision of this Court in Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20.…
Coshott v Parker [2017] NSWSC 1098
Citation 11 (Para 39)

…Although the parties did not refer to the decisions of Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20; (2016) 111 ACSR 277 ( Mateljan ) and Cooper v Moloney (No 5) [2012] SASC 211; (2012) 271 FLR 304, they are nonetheless significant because of the nature of the proceedings and the differences in approach…
Tonbul Baykal v Terry Van Der Velde as trustee for bankrupt estate of Hakan Tandogan [2017] NSWSC 36
Citation 12 (Para 27)

…overned by authority by which I am bound. The question has been alluded to by the Court of Appeal recently in Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20; (2016) 111 ACSR 277 in terms that did not cast doubt on the conclusions in Truthful Endeavour (see at [27]).…
Land and Enviro Corp v HHT Huntley Heritage Pty Ltd [2016] NSWCA 376
Citation 13 (Para 3)

…de, were brought by LEC, Mr & Mrs Zdrilic and Amy Holdings Pty Ltd. As is noted in this Court’s judgment in Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20 (Gleeson, Leeming JJA and Emmett AJA) at [6], Mr & Mrs Zdrilic are both now bankrupts and Amy Holdings and LEC are in liquidation. The appeal, insofar…
Adelaide Bank Limited v Phontos [2016] FCA 824
Citation 14 (Para 29)

…As explained in Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20; 111 ACSR 277 at [27] by the New South Wales Court of Appeal: The Supreme Court is invested with federal jurisdiction under s 4(1) of the Jurisdiction of Courts (Cross-Vesting) Act 1987 (Cth) in cases where it would not otherwise have jurisdic…

See all citing cases →

Cases Cited

Zdrilic v Hickie [2015] FCCA 2882
Citation 1 (Para 13)

…proceedings by way of appeal to the Federal Court of Australia from the orders of the Federal Circuit Court of 26 November 2015. 7. Zdrilic v Hickie [2015] FCCA 2882.…
Truthful Endeavour Pty Ltd v Condon [2015] FCAFC 70
Citation 2 (Para 26)

…er” within the meaning of s 3(1) of that Act. [12] 12. Truthful Endeavour Pty Ltd v Condon (Trustee), in the matter of Rayhill (Bankrupt) [2015] FCAFC 70; 321 ALR 483.…
Re Colorado Products Pty Ltd (in prov liq) [2014] NSWSC 789
Citation 3

…Gold Coast Pty Ltd) v Tim Barr Pty Ltd [2005] NSWCA 240 Radio Corporation Pty Ltd v Bear (1961) 108 CLR 414 Re Colorado Products Pty Ltd [2014] NSWSC 789 Re Pollitt; Ex Parte Minor [1893] 1 QB 455 Rickard Constructions Pty Ltd v Moretti Pty Ltd [2004] NSWSC 1041 Scott v Bagshaw [2000] FCA 816 South Australian Mana…
Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2014] NSWCA 34
Citation 4 (Para 5)

…(NSW), r 51.9. 5. Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2013] NSWCA 35. 6. Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2014] NSWCA 34.…
Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2013] NSWCA 35
Citation 5 (Para 5)

…of appeal was filed on, 6 March 2014. 4. Uniform Civil Procedure Rules 2005 (NSW), r 51.9. 5. Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2013] NSWCA 35. 6. Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2014] NSWCA 34.…
Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2012] NSWSC 382
Citation 6 (Para 1)

…ty Ltd ( Amy Holdings ) against HTT Huntley Heritage Pty Ltd ( HTT ) and other defendants. 1. Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2012] NSWSC 382.…
C G Maloney Pty Ltd v Noon [2011] NSWSC 242
Citation 7

…iction of Courts (Cross Vesting) Act 1987 (Cth), ss 3, 4, 6 Trade Practices Act 1974 (Cth), s 87 Cases Cited: CJ Maloney Pty Ltd v Noonan [2011] NSWSC 242 Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2013] NSWCA 35 Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2014] NSWCA 34 Meriton Apartment…
Project 28 Pty Ltd v Barr [2005] NSWCA 240
Citation 8 (Para 42)

…y protect. [20] 18. Trendex Trading Corporation at 694 and 703. 19. Project 28 Pty Ltd (formerly Narui Gold Coast Pty Ltd) v Tim Barr Pty Ltd [2005] NSWCA 240 at [41]–[42]. 20. Rickard Constructions at [59].…
Rickard Constructions Pty Ltd v Rickard Hails Moretti Pty Ltd [2004] NSWSC 1041
Citation 9 (Para 37)

…who “has suffered, or is likely to suffer, loss or damage”. 15. Relying on Rickard Constructions Pty Ltd v Rickard Hails Moretti Pty Ltd [2004] NSWSC 1041; 188 FLR 278 at 294 and 298. 16. Relying on Pritchard v Racecage Pty Ltd (1997) 72 FCR 203 at 218.…
Scott v Bagshaw [2000] FCA 816
Citation 10 (Para 25)

…e Meriton Apartments Pty Ltd v Industrial Court of New South Wales [2008] FCAFC 172 at [18] and [194] ff; 252 ALR 19. 11. See Scott v Bagshaw [2000] FCA 816; 99 FCR 573 at [20].…
Pritchard v Racecage Pty Ltd [1997] FCA 27
Citation 11 (Para 37)

…ctions Pty Ltd v Rickard Hails Moretti Pty Ltd [2004] NSWSC 1041; 188 FLR 278 at 294 and 298. 16. Relying on Pritchard v Racecage Pty Ltd (1997) 72 FCR 203 at 218.…
Radio Corporation Pty Ltd v Bear [1961] HCA 26
Citation 12 (Para 29)

…any transferee with notice of the bankruptcy. [14] 13. Re Pollitt; Ex Parte Minor [1893] 1 QB 455 at 457. 14. Radio Corporation Pty Ltd v Bear (1961) 108 CLR 414 at 422.…
[1982] AC 679 [1982] AC 679
Citation 13 (Para 41)

…ty, such as a cause of action that is ancillary or incidental to a right of property. [17] 17. Relying on Trendex Trading Corporation v Credit Suisse [1982] AC 679 at 702–3; South Australian Management Corporation v Sheahan (1995) 16 ACSR 45 at 58.…
[1893] 1 QB 455 [1893] 1 QB 455
Citation 14 (Para 29)

…has no right to deal with the assets so as to give a title to any transferee with notice of the bankruptcy. [14] 13. Re Pollitt; Ex Parte Minor [1893] 1 QB 455 at 457. 14. Radio Corporation Pty Ltd v Bear (1961) 108 CLR 414 at 422.…
Meriton Apartments Pty Limited v Industrial Court of New South Wales [2008] FCAFC 172
Citation 15 (Para 25)

…effect on the title of” the Trustee is a matter in bankruptcy[11] . 10. See Meriton Apartments Pty Ltd v Industrial Court of New South Wales [2008] FCAFC 172 at [18] and [194] ff; 252 ALR 19. 11. See Scott v Bagshaw [2000] FCA 816; 99 FCR 573 at [20].…

Legislation Cited

Bankruptcy Act 1966 (Cth) 115, 116, 178, 179, 27, 5, 58
8 mentions (from Para 24)
Corporations Act 2001 (Cth) 420
2 mentions (from Para 7)
Trade Practices Act 1974 (Cth) 87
2 mentions (from Para 37)
Uniform Civil Procedure Rules 2005 (NSW) 51.9
2 mentions (from Para 5)
Constitution of Australia (Cth) 77
1 mention
Jurisdiction of Courts (Cross-vesting) Act 1987 (TAS)
1 mention (from Para 24)

Medium Neutral Citation:	Mateljan v HTT Huntley Heritage Pty Ltd [2016] NSWCA 20
Hearing dates:	7 December 2015
Decision date:	24 February 2016
Before:	Gleeson JA Leeming JA Emmett AJA
Decision:	1. Substitution motion Dismissed. 2. Appellant ordered to pay the respondent’s costs of the substitution motion.
Catchwords:	EQUITY - general principles – assignments in equity – substitution motions - Bankruptcy Act – whether bankrupt has power to appoint receiver – whether assignment beyond Power – whether causes of action were assignable
Legislation Cited:	Bankruptcy Act 1966 (Cth), ss 5, 27, 58, 115, 116, 178, 179 The Commonwealth Constitution, s 77 Corporations Act 2001 (Cth), s 420 Jurisdiction of Courts (Cross Vesting) Act 1987 (Cth), ss 3, 4, 6 Trade Practices Act 1974 (Cth), s 87
Cases Cited:	CJ Maloney Pty Ltd v Noonan [2011] NSWSC 242 Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2013] NSWCA 35 Land Enviro Corp Pty Ltd v HTT Huntley Heritage Pty Ltd [2014] NSWCA 34 Meriton Apartments Pty Ltd v Industrial Court of New South Wales [2008] FCAFC 172 Pritchard v Race Cage Pty Ltd (1997) 72 FCR 203 Project 28 Pty Ltd (formerly Narui Gold Coast Pty Ltd) v Tim Barr Pty Ltd [2005] NSWCA 240 Radio Corporation Pty Ltd v Bear (1961) 108 CLR 414 Re Colorado Products Pty Ltd [2014] NSWSC 789 Re Pollitt; Ex Parte Minor [1893] 1 QB 455 Rickard Constructions Pty Ltd v Moretti Pty Ltd [2004] NSWSC 1041 Scott v Bagshaw [2000] FCA 816 South Australian Management Corporation v Sheahan (1995) 16 ACSR 45 Trendex Trading Corporation v Credit Suisse [1982] AC 679 Truthful Endeavour Pty Ltd v Condon (Trustee), in the matter of Rayhill (Bankrupt) [2015] FCAFC 70 Zdrilic v Hickie [2015] FCCA 2882
Category:	Procedural and other rulings
Parties:	John Mateljan (Appellant) HTT Huntley Heritage Pty Ltd (in its own and as Trustee of the Huntley Trust) (Respondent)
Representation:	Counsel: A C Harding (Respondent) Solicitors: S Zdrilic (with leave) (Appellant) K & L Gates (Respondent)
File Number(s):	2012/156726
Publication restriction:	Nil
Decision under appeal	Court or tribunal: Supreme Court of New South Wales Jurisdiction: Equity Division Citation: [2012] NSWSC 382 Date of Decision: 20 April 2012 Before: Stevenson J File Number(s): 2007/254173