AGL Victoria Pty Ltd v Lockwood and Others
[2003] VSC 453Agl Victoria Pty Ltd
vLockwood and Others
Judge:
Byrne J
Subject References:
Companies
Receivers and managers
Liability for company debts
Manufacturing business
Purchase of electricity
Company's pre-existing agreement with electricity retailer
Interpretation
Nature of company's obligation
Receiver instructing electricity retailer to continue supply
Pre-existing supply agreement not thereby terminated
Whether electricity supply debt arose by contin-ued operation of agreement or by receiver's decision to use electricity to conduct company's busi-ness
Whether a debt for goods purchased, services rendered or property used
Corporations Act 2001 (Cth)s 419(1)
Legislative References:
Corporations Act 2001 (Cth) - s 419(1)
Companies Act 1934 (SA) - s 311(4)
Companies Act 1948 - s 369(2)
Companies Act 1955 (NZ) - s 354(2)
Electricity Industry Act 2000 - s 18
Trade Practices Act 1974 - s 68A
Contractors' and Workmen's Liens Act 1908 (NZ) - s 48
Commerce Guarantees Act 1993 (NZ) - The Act
Companies Act 1936 (NSW) - s 337(3)
Small Claims Tribunal Act 1973 - The Act
Factories and Shops Act 1896 - The Act
Companies Act 1948 (UK) - s 108(1)
Theft Act 1968 (UK) - s 4
Judgment date: 14 November 2003
Conclusion
[94] I conclude therefore that the debt of F & T which was incurred by the receiver is a debt for goods purchased. Accordingly, by s 419(1), the receiver is personally liable for it.
Judgment for the plaintiff.
Solicitors for the plaintiff: Corrs Chambers Westgarth .
Solicitors for the defendant: Minter Ellison .
Solicitors for the eighth to eleventh third parties: Rigby Cooke .
[An appeal was discontinued on 22 February 2005: Ed VR.]
An examination of the first invoice for 74 Keys Road suggests that this is not correct for these premises, but the parties before me proceeded on the basis that all accounts opened with a nil balance and I too will proceed on that basis.
Statement of claim, para 10.
Statement of claim, para 11.
George Barker (Transport) Ltd v Eynon [1974] 1 All ER 900 .
See s 428.
(1949) 66 WN (NSW) 211.
(1995) 19 ACSR 108 ; 14 ACLC 307 .
At ACSR 111-12; ACLC 310.
[1999] 1 Qd R 185.
At 192-3.
Section 324(1) of the Corporations Law, the then equivalent of s 419.
(1979) CLC ¶40-522.
At 32,100.
See [28].
[1999] 1 Qd R 185 at 192.
Hansard, 13 November 1934 , p 1996.
Companies Act 1936 (NSW), s 337(3).
Companies Act 1938, s 306(3).
Burt, Boulton and Hayward v Bull [1895] 1 QB 276 .
General Insolvency Inquiry , Discussion Paper No 32, August 1987, para 154.
ALRC 45 (1988), para 217.
As, for example, in Re Central Heat Distribution Ltd (1970) 11 DLR (3d) 585 ; 74 WWR 246 .
Section 3.
See s 4.
[1999] 1 Qd R 185 at 193, mentioned at [22] above.
See Draper v Friend (1894) 15 ALT 201 at 202, discussed at [72] below; East Midlands Electricity Board v Grantham [1980] CLY 271 , discussed at [77] below.
523 NE 2 d 835 (Ohio 1988).
At 839.
Ibid.
590 NY Supp 2d 628 (1992).
At 631-2.
Otte v Dayton Power & Light Co 523 NE 2 d 835 at 838.
438 NY Supp 2d 645 (1981).
As in Bentley Bros v Metcalfe & Co [1906] 2 KB 548 .
ZumBerge v Northern Slates Power Co 481 NW 2 d 103 (Minn CA - 1992).
See for example Buckeye Union Fire Insurance Co v Detroit Edison Co 196 NW 2 d 316 (CA Mich - 1972).
[1931] GLR 446 .
At 448.
[1956] NZLR 954 .
(1998) 6 NZBLC 102 ,555.
At 102,562-3.
Compare Corporations Act, s 600F.
(1943) 68 CLR 165 .
At 174.
At 188.
At 181.
His Honour was a dissentient in the Employers' Mutual Indemnity Association Ltd case.
(1965) 112 CLR 564 at 578.
(1949) 66 WN (NSW) 211 at 212.
The then equivalent of s 419(1).
[2000] 1 Qd R 107.
At 111. See also Re Ansett Australia Ltd (2002) 115 FCR 376 at 387, per Goldberg J (a debt arising out of a contract for service or services).
[1981] VR 602 .
[1979] VR 167 .
[1935] 1 KB 579 .
As in Bentley Bros v Metcalfe & Co [1906] 2 KB 548 at 552 per Collins MR.
The Noordam (No 2 ) [1920] AC 904 at 908-9.
Oxford English Dictionary , p 673.
Strouds Judicial Dictionary , 6th ed, (2000), p 1089.
Jowitt's Dictionary of English Law , 2nd ed, (1977), p 865.
Blackstone's Commentaries , (1767), p 387.
For example Trade Practices Act, s 4(d) where "goods" is defined expressly to include gas and electricity.
Chitty on Pleading , (1836), vol 2, p 43.
Goods Act 1958, s 3(1).
Sutton, Sales and Consumer Law , 4th ed, (1995), p 91.
Benjamin's Sale of Goods , 6th ed, (2002), para 1-083.
Oxley County District Council v Macleay River County District Council (1964) 82 WN (Pt 2) (NSW) 12 at 16 per Jacobs J.
(1894) 15 ALT 201 .
At 202.
(1899) 16 WN (NSW) 49.
[1906] 2 KB 548 .
At 553.
At 554.
[1909] 2 KB 604 .
(1970) 11 DLR (3d) 585 ; 74 WWR 246 .
East Midlands Electricity Board v Grantham [1980] CLY 271 .
This case may be contrasted with a case on the equivalent statute in New Zealand which accepted that an order for the purchase of gas from the gas mains was an order for goods: Hutt Valley Energy Board v Hayman (1988) 4 NZ CLC 96-204.
(1975) 119 Sol Jo 695 ; [1975] Crim LR 513.
[1975] Crim LR 513.
(1998) 6 NSBLC 102 ,555. See [57] above.
At 102,561.
[1983] 2 NSWLR 48 .
At 54.
[1996] 4 All ER 481 at 493.
(1990) 27 FCR 460 .
At 468.
(1999) 99 ATC 4274 ; 41 ATR 340 .
At ATC 4284; ATR 350-1.
At ATC 4283; ATR 350.
(1999) 96 FCR 22 .
At 30.
MP Metals Pty Ltd v Federal Commissioner of Taxation (1968) 117 CLR 631 at 637, speaking of "manufactured goods".
278 NE 2 d 608 (Ind CA - 1972).
196 NW 2 d 316 (1972).
At 317.
502 NE 2 d 713 (1986).
At 715.
See [71] above.
(1949) 66 WN (NSW) 211 at 213.
(1994) 35 NSWLR 64 at 69.