Elders Pastoral Ltd v Bank of New Zealand - [1989] 2 NZLR 180

Equity — Fiduciary relationship — Breach of duty by agent — Stock agent persuaded Bank to take security over farmer's stock — Security provided that proceeds of sale of stock were to be paid to Bank — Stock agent sold some of farmer's stock and used proceeds in repayment of money owing by farmer to stock agent — Bank sought to recover proceeds from stock agent — Whether stock agent had fiduciary duty to Bank and held proceeds on constructive trust for Bank — Whether Bank was entitled to recover proceeds.

Property law — Instrument by way of security — Stock agent persuaded Bank to take security over farmer's stock — Instrument by way of security provided that proceeds of sale of stock were to be paid to Bank — Stock agent sold some of farmer's stock and used proceeds in repayment of money owing by farmer to stock agent — Bank sought to recover proceeds from stock agent — Whether provision in instrument amounted to assignment of future chose in action — Whether stock agent had fiduciary duty to Bank and held proceeds on constructive trust for Bank — Whether Bank was entitled to recover proceeds.