North Sydney Commercial Lawyers

PPSA’s Maiden ExplanationPrint This Post

PPSA’s Maiden Explanation

Insolvency Update – Spring 2013

On 27 June 2013, Australia obtained its first case fully explaining how the Personal Property Securities Act 2009 (PPSA) will be approached by the Australian courts.

In Maiden Civil (P & E) Pty Ltd et ors – v – Queensland Excavation Services Pty Ltd et ors [2013] NSWSC 852, Brereton J clarified that the bedrock of our law has indeed changed and that the concept of nemo dat quod non habet (you can’t give what you don’t own) has been fundamentally altered by the provisions of the PPSA.

He confirmed [at 35] that competing security interests have to be resolved in accordance with the system of priorities established by the PPSA and that such a dispute cannot be resolved through the determination of who has title to the collateral because the dispute is one of priority not ownership.