Scandi International Pty Ltd v Larkfield Industrial Estate Pty Ltd

Scandi International Pty Ltd, a company in liquidation, stored outdoor furniture at Larkfield Industrial Estate Pty Ltd's commercial storage facility. Scandi's occupancy terminated for non-payment of storage charges. Other companies subsequently claimed ownership and entitlement to the return of the stored furniture. The central issue before the court was whether the outstanding storage charges must be paid before the furniture could be returned. The court also had to determine if the storage facility operator had the right to dispose of the stored furniture under an equitable lien, and the relationship between the individual who arranged the storage and the companies claiming return of the stored furniture.

The court found that the outstanding storage charges were a prerequisite to the return of the stored furniture. It held that the storage facility operator was entitled to exercise an equitable lien over the stored furniture to secure payment of the outstanding charges. The court rejected the claim that the other companies had any entitlement to the stored furniture. It concluded that the individual who arranged the storage did not act as an agent for the companies claiming return of the stored furniture. The court held that the storage facility operator was entitled to dispose of the stored furniture to satisfy the outstanding charges.

The court further held that the storage facility operator was not in breach of Part 4.2 of the Australian Consumer Law and Fair Trading Act 2012 (Vic) by disposing of the stored furniture. The court ordered that the stored furniture be sold to satisfy the outstanding storage charges, with any surplus to be returned to the relevant party. The court dismissed the claims of the companies who sought to claim the stored furniture, and ruled in favour of the storage facility operator.