In the courts

New Zealand Bloodstock loses PPSA appeal
The majority of the Court of Appeal has dismissed
a high-profile appeal by New Zealand Bloodstock. In the High Court, New Zealand Bloodstock as lessor of a thoroughbred stallion lost priority in the stallion to the holder of a debenture over the lessee's assets. New Zealand Bloodstock had failed to register its "deemed" security interest under the Personal Property Securities Act 1999 (the PPSA).

Bank "unimpeachable" in freezing customer's account without giving reasons
In the UK, a court has agreed with a bank that believed it would be committing a criminal offence by unfreezing a customer's account or explaining to the customer why the account had been frozen.

More on undue influence
The High Court has found that undue influence was exerted over the vendor of properties even though she received independent advice about the transaction.

Creditors defeated by matrimonial property agreement
The majority of the Court of Appeal has found that a married couple successfully quarantined certain assets from the husband's business creditors through a matrimonial property agreement.

Rectification of clause in standard form mortgage
In this case, the High Court allowed rectification in respect of a clause included in a standard form mortgage where the mortgagee had notice of the intended position.

Agreement to mortgage generally requires effective request for mortgage before caveat can be registered
This case discusses a number of points of interest in construction/conveyancing situations relating to the existence of caveatable interests and the requirements for protecting them.

Intentions to novate and assign found to be mutually exclusive
A UK decision that upheld the entitlement of a purchaser of debt to enforce rights under the facility agreement as transferee also noted that the purchaser's alternative claim as assignee would have failed.

Second mortgagee loses out to GST paid by first mortgagee on sale
An appeal by a second mortgagee, which argued a right to claim in the distribution of the mortgagor's assets ahead of payment of the GST on the sale of the assets by the first mortgagee, has been dismissed.

Enquiries and information

For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.