Central Cleaning Supplies (Aust) Pty Ltd V Elkerton (2016)

CITATION [2016] VSC 431

In earlier proceedings, Central Cleaning had been successful in obtaining orders that it held perfected security interests over equipment provided to Swan Services, but (as it turned out) most of the equipment was no longer in the possession of Swan Services, and Central Cleaning failed to establish that the liquidators of that company were liable to provide compensation for the lost equipment. 

In a claim for costs, Central Cleaning had previously argued that it was reasonable for it to have rejected settlement offers of Swan Services due to the uncertainty of the PPSA as new law.

In these proceedings, the court allocated costs an issue by issue basis, taking account of each party’s mixed success, but did not advert to the ‘uncertain law’ argument in considering reasonableness.

The summary of the pertinent points in this legal case update has been provided by Steve Pemberton, Lawyer and Consultant, as an extract from his digest of PPSA cases.