Rubis v Garrett as Trustee of the Andrew Garrett Family Trust Trading as Dynamic Commercial Workforce Solutions (No 2)

In this matter, the applicants, including Robert Rubis and several associated companies, sought to have certain registrations removed from the Personal Property Securities Register (PPSR). The registrations in question were made by Mr. Garrett, who had a history of being a vexatious litigant, including being an undischarged bankrupt. The registrations related to alleged security interests over the applicants' assets, which the applicants denied. The case was heard in the Federal Court of Australia, where Justice Edelman presided. The central legal issue was whether the alleged security interests could be considered valid under the Personal Property Securities Act 2009 (Cth) and whether the Registrar of Personal Property Securities was justified in registering them.

The Court found that the security interest asserted by Mr. Garrett was merely an equity and not a registrable security interest under the Act. This was significant because the Act requires that only actual security interests be registered, not mere equities. Furthermore, the Court held that the Registrar should have acted on their own initiative to remove the vexatious registrations since Mr. Garrett was known to be a vexatious litigant. The Court found that the Registrar's failure to do so was a breach of their duties under the Act.

As a result, the Court ordered that the Registrar must remove the vexatious registrations from the PPSR forthwith. The Court also imposed a permanent restraint on the Registrar from registering any further statements made by Mr. Garrett without prior Court approval. Additionally, the Court ordered Mr. Garrett to pay the applicants' costs on an indemnity basis and directed the Registrar to refer the matter to the Commonwealth Director of Public Prosecutions for potential criminal investigation.

This case underscores the importance of ensuring that only legitimate security interests are registered on the PPSR and highlights the responsibilities of the Registrar in preventing the registration of vexatious or false information. The outcome serves as a deterrent against the misuse of the PPSR by vexatious litigants and reinforces the need for the Registrar to act diligently in such cases.