Feltex Finance Ltd v Hines [1990] QSC 228

\ 10 0 30 40 50 (Copyritht in this transcript is vested in the crown. Copies thereof must not be made or sold withGut the written authority of the Chief Court Raporter,court Reporting Bureau.) BETWilBN: 5G FELTEiK FIN:ANCE LIMITED Plaintiff -and- LAWftBtlCE EBWARD HINES and all other ae~sons interested in the ship "PRBE SPIRIT" ORDER Defendants HIS H0NOUR: This, I feel, is a very hard case, but hard cases inevitably arise out of the giving of mortgages and the enforcement of the mortgagees rights. It is, of course, in fact, not a case of a sale by a mortgagee as such; it is a sale ordered by the Court in order to satisfy wholly or in part a juagment debt in an action in rem. The fact is that in August 1989, at a time when the problems in the tourist industry had not really set in, an adequately advertised sale of the vessel failed. Since then the best offer which has been obtained has been $181,000, and if there is to be a sale it has to be completed shortly - I think early next month. The contention is that the vessel should be taken to the south coast of Queensland where it could be expected, so it is said, to fetch a higher price. The evidence as to that, to my mind, is not at all convincing. The only 10 20 30 40 50 60 60 G 214-Govt. Printer, Oki. 1 -- 1 of 2 -- 10 0 aftichvit from a peraon who ia actually in the business in ~~ the aouth, who not cross-examined, 1& to the effect that a ,., prioe of $225,000 ma\V be obtained. That 1s a little over $40,000 over the price which will be obtained 1f the sale is carried through. The situation is that the creditor has a sure sale for $181,000, and what I am asked to do is to set aside his rights and his interests in the hope that a sale might take place at some time in the future at some better price. I do not think that the material which has been put before me or the arguments which have been put to me - and Mr. White has sa~d everything that could be said in the matter - justify my taking that course. ",·•, .. ';,,,, I might mention that having the vessel taken south would inevitably,· it seems to me, involve taking it out of 30 arrest because it would not be practicable to go to the expense of taking it south under arrest. If it is taken out of arrest there is always a risk that it will not fetch up where it should Eetch up after the voyage has commenced. I say that just as an aestract proposition because obviously I 40 50 have no ::c:eason whatever to distrust Mr. Hines. Everything I have heard of him is to his credit. I feel a great deal of sympathy for him. However, I am constrained, I believe, to approve of the application. I ma~e an order in terms of the summons. I order that the defendants pay to the plaintiff its costs of the application to be taxed. 10 20 30 40 50 <> ---=6=-0--+--------------------------------~ 60 G 214-Govt. Printer, Qkl. 2 -- 2 of 2 --