Tracey v Madden

This case concerned an interpleader issue in New South Wales regarding the ownership of certain horses. Catherine Madden claimed the horses, which had been seized by the sheriff under a judgment against the execution debtor. At trial, Madden presented evidence of purchasing the horses for £90 and produced a document described as a receipt for the purchase money. The trial judge nonsuited Madden, ruling that the document constituted an unregistered assurance of personal chattels under section 3 of the *Bills of Sale Act 1898* (NSW) and was therefore void against the sheriff.

The legal issue before the High Court was whether the Supreme Court of New South Wales had erred in setting aside the nonsuit. The Supreme Court had held that the document, in form a receipt, did not necessarily render the transaction void if there was evidence of a sale completed independently of the document. The Supreme Court determined that it should have been left to the jury to decide whether such an independent sale had occurred.

The High Court refused special leave to appeal, finding the Supreme Court's decision to be plainly right. The Court reasoned that the document, while potentially an assurance of personal chattels, was also presented as a receipt for purchase money. Crucially, there was evidence suggesting a sale transaction could have been completed independently of the document itself. Therefore, the question of whether a binding sale had occurred, separate from the document, was a question of fact that ought to have been left for the jury to determine.