Thomsons has acted for the successful Plaintiffs in the Maiden Civil Case in the Supreme Court New South Wales,  NSWSC 852, which resulted in a significant decision under the Personal Property Securities Act 2009 (Cth) (PPSA).
Important matters arising from the case include:
- The nemo dat rule (that one cannot give what is not theirs) has been displaced in Australia where the PPSA applies.
- In certain circumstances, entities that have an interest in personal property that is less than ownership can grant security interests to third parties, which can ultimately take priority over the interest of the true owner if the owner has not perfected their interest in the goods under the PPSA. An interest in goods as a PPS Lessee is one such example.
- Banks, financiers, and parties that are in the business of leasing personal property, or selling goods on a retention of title basis, must register their interests on the PPSR in accordance with the provisions of the PPSA if they are to avoid the risk of losing their priority to the goods.
- Parties who seek to rely upon the 24 month transitional provisions would do well to ensure that their interest was not registrable on a transitional register prior to the commencement of the PPSA. If it was, they lose the benefit of any protection.
Further information about the case and judgement is available here.