CITATION  FCA 715
JUDGE/S BEACH J
Mr Garrett and Treasury Wine Estates were parties to a Settlement Deed under which TWE agreed to indemnify him against certain costs and expenses. He registered a financing statement claiming a security interest over TWE’s assets, and also purported to appoint himself ‘managing controller’ of TWE pursuant to his security interest.
The court held that a contractual indemnity was not a security interest, and ordered the removal of the financing statement. The court also ordered that he be restrained from acting as ‘managing controller’ of TWE. See also National Australia Bank Ltd v Garrett  FCA 714, a case with similar facts.
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.