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RDG
online Restitution Discussion Group Archives |
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Last week, Charles
Mitchell asked:
Is it meaningful to speak of a party having
a right without a correlative remedy? and went on to discuss some possible examples.
The question is an old one, and to my mind turns largely on what meaning
is attributed to the terms used in stating it.
A similar question was considered (in a very different
context) by Gummow and Kirby JJ in the High Court of Australia in Commonwealth
v Mewett (1997) 146 ALR 299 http://www.austlii.edu.au/
do/disp.pl/au/cases/cth/ high_ct/unrep328.html. Their answer was:
"Where a debtor makes a payment to the creditor without directing that
it be paid in reduction of a particular debt, the right of appropriation
which thereby devolves upon the creditor may be exercised by application
to payment of the time-barred debt rather than to another debt which is
still enforceable. A possessory lien may be exercised in respect of a
statute-barred debt. Further, where the debtor approaches the court for
equitable relief in aid of other rights against the creditor, the debtor
will be required to do equity. Thus, a mortgagor seeking equitable relief
in a redemption action is obliged to do equity by paying to the mortgagee
all arrears of interest from the date of the mortgage, not merely that
interest due and owing for less than six years.
These latter considerations may not bear upon the facts of the particular
case [being considered by the HCA], being but illustrations of the proposition
that the existence of direct curial remedy is not co-extensive with the
juridical existence of the right."
Returning, then, to the general debate in re Archer, it does not seem
at all surprising to me that D could have the right to have a judgment
against it set aside without acquiring the right then to have P repay
the proceeds of the judgment that P had received. A legal system could
make that choice on the basis of the policy considerations that it found
compelling (for example, it may regard the symbolic act of setting the
judgment aside as sufficient civil vindication and may provide only criminal
sanctions where P obtained the judgment by fraud).
And, with respect to all those who think otherwise, I do not see that
debating the matter in terms of the abstractions of the law of restitution
is likely to lead to an appropriate choice as to whether or not D should
be able to disgorge the proceeds of the judgment. Of course, the existence
of a coherent law of restitution for unjust enrichment may be a relevant
policy factor in some legal systems. But the contested nature -- some
might say 'existence' -- of a coherent law of restitution for unjust enrichment
in our legal systems and the extreme pliability of the terms it uses (mistake,
absence of consideration/cause, failure of basis) (as demonstrated in
the debate to date) makes it almost useless from my point of view in determining
whether or not P should repay the proceeds of the judgment.
Please pardon the sceptical nature of this contribution to the debate!
Simon Evans. <== Previous message Back to index Next message ==> |
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