Chipper v Octra Nominees Pty Ltd [2006] FCA 1633

FEDERAL COURT OF AUSTRALIA

Chipper v Octra Nominees Pty Ltd [2006] FCA 1633 LEASE – Lessee granted first right of refusal – When first right of refusal must be offered – Triggering event – Contract for sale with third party – Contract not performed and subsequently varied to purchaser's advantage – Whether lessee thereby entitled to be offered further right to refuse

LEASE – Sub-lease in near identical terms – Lessee/sub-lessor not at arm's length from lessor – First right of refusal to buy freehold contained in sub-lease – Nature of sub-lessor's obligation to sub-lessee – Whether first right of refusal in lease held on trust for sub-lessee TRUST – Lease and sub-lease of land both giving first right of refusal to buy freehold – Whether first right of refusal in lease held on trust for sub-lessee

EQUITY – Priority of equitable interests in land – Interest arising from execution of contract for sale of land – Purchaser on notice of lessee's first right of refusal in existing lease – Contract varied to purchaser's advantage – Whether purchaser's equitable interest superior to interest of lessee in being offered right to refuse

CONTRACT – Lessee of land given first right of refusal to buy freehold – When triggering event occurs – Execution of contract for sale with third party – Whether breach of contract by lessor – Whether lessee thereupon in position of grantee of option SPECIFIC PERFORMANCE – Contract to give lessee first right of refusal to buy freehold – Lessor in breach by executing contract for sale with third party – Whether lessee in position of grantee of option – Whether lease entitled to call for transfer – Whether lessee's rights superior to those of third party – Whether lessee ready and willing

Guardianship and Administration Act 1990 (WA)

Bahr v Nicolay [No 2] (1988) 164 CLR 604 Beneficial Finance Corporation Ltd v Multiplex Constructions Pty Ltd (1995) 36 NSWLR 510 Bircham & Co Nominees (No 2) Ltd v Worrell Holdings Ltd (2001) 82 P & CR 34 Bob Jane T-Marts Pty Ltd v The Baptist Union of Victoria [1999] VSC 346 Goldmaster Homes Pty Ltd v Johnson (2004) 12 BPR 23, 167 Hunt v Luck [1902] 1 Ch 428 Jonns v Kim Seong Tan (1999) 9 BPR 17 Kling v Keston Properties Ltd (1985) 49 P & CR 212 Laybutt v Amoco Australia Pty Ltd (1974) 132 CLR 57 Mackay v Wilson (1947) 47 SR (NSW) 315 Milmo v Carreras [1946] 1 KB 306 Morland v Hales (1910) 30 NZLR 201 Motor Works Ltd v Westminster Auto Services Ltd [1997] 1 NZLR 762 Pata Nominees Pty Ltd v Durnsford Pty Ltd [1988] WAR 365 Pritchard v Briggs [1980] Ch 338 Ramlal v Chaitlal [2004] 1 P & CR 1 Re Australian Elizabethan Theatre Trust; Lord v Commonwealth Bank of Australia (1991) 30 FCR 491 Sahade v BP Australia Pty Ltd (2004) 12 BPR 22 Speciality Shops Ltd v Yorkshire and Metropolitan Estates Ltd [2003] 2 P & CR 31 Sterns Trading Pty Ltd v Shteinman [1988] NSW ConvR ¶55-414 Tiffany Investments Ltd v Bircham & Co Nominees (No 2) Ltd [2004] 2 P & CR 10 Transfield Properties (Kent Street) Pty Ltd v Amos Aked Swift Pty Ltd (1994) 36 NSWLR 321 Trident General Insurance Co Ltd v McNiece Bros Pty Ltd (1988) 165 CLR 107 Tuck v Baker [1990] 2 EGLR 195 Walker Corporation Pty Ltd v W R Tatman Pty Ltd (1990) 20 NSWLR 624 White Property Developments Pty Ltd v Richmond Growth Pty Ltd [1998] FCA 26 Wilson v Darling Island Stevedoring and Lighterage Co Ltd (1956) 95 CLR 43 Woodroffe v Box (1954) 92 CLR 245