Pittmore Pty Ltd v Chan; Chan v Tan [2020] NSWCA 344

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Pittmore Pty Ltd v Chan; Chan v Tan [2020] NSWCA 344 Hearing dates: 18,19 November 2020 Decision date: 18 December 2020 Before: Bell P at [1]; Leeming JA at [2]; Brereton JA at [214]. Decision: 1. Grant leave to appeal, direct Pittmore to file a notice of appeal in accordance with the draft notice of appeal, and otherwise dispense with the requirements of service. 2. Appeal dismissed. 3. Grant leave to cross-appeal, direct Mr Chan to file a notice of cross-appeal in accordance with the draft notice of cross-appeal, and otherwise dispense with the requirements of service. 4. Cross-appeal dismissed. 5. Subject to order 7 below, Pittmore to pay Mr Chan's costs of the appeal. 6. Subject to order 7 below, Mr Chan to pay Pittmore's and Mr Joo Kee Tan's costs of the cross-appeal. 7. No part of the cost of providing the eight volumes of white folders filed on 3 November 2020 is to be passed on by David Kam & Co, with the intent that the entirety of those costs be borne by that firm. Catchwords: CONTRACTS – construction – whether mistake in written agreement can be rectified by construction – inconsistency concerning right to terminate on face of document – primacy given to handwritten amendments COSTS – appeal books – unnecessary reproduction of thousands of pages already reproduced in appeal books – whether special order as to costs warranted DEEDS – delivery – whether deed restating terms of joint venture delivered to other side in escrow – whether terms of document precluded finding of delivery in escrow – whether deed even if not delivered effective as simple contract ELECTION AND WAIVER – where one party continued to perform work and incur expenses pursuant to joint venture after a contractual right of termination had accrued – absence of any reservation of rights – significance of "no waiver" clause EQUITY – ancillary liability – liability for procuring or inducing breach of trust or breach of fiduciary duty – whether requirement that third party be "dishonest" – whether separate bases of liability for procuring as opposed to inducing breach – whether director of company acting as such capable of procuring or inducing breach of trust by director's company EQUITY – rectification – whether contract should be rectified in equity if mistake incapable of being corrected by construction EQUITY – unconscionability – statutory unconscionability – joint venture to develop land for resale – offer made to one party to sell part of joint venture land at profit – offer communicated to other party with invitation to share profit – other party sought to persevere with joint venture – first party purported to terminate and sell land – finding that first party believed entitled to terminate – in fact first party not entitled to terminate – first party's conduct not unconscionable contrary to s 21 of Australian Consumer Law Legislation Cited: Australian Consumer Law, s 21 Conveyancing Act 1919 (NSW), s 38 Duties Act 1997 (NSW), s 17 Law of Property Act 1936 (SA), s 41AA Uniform Civil Procedure Rules 2005 (NSW), Pt 51 Cases Cited: Alleyne v Darcy (1854) 4 Ir Ch Rep 199 Armstrong Strategic Management and Marketing Pty Limited v Expense Reduction Analysts Group Pty Ltd (No 9) [2016] NSWSC 1005 Australian Securities and Investments Commission v Kobelt (2019) 267 CLR 1; [2019] HCA 18 Australian Securities Commission v AS Nominees Ltd (1995) 62 FCR 504 Australian Super Developments Pty Ltd v Marriner [2014] VSC 464 Baden v Société Générale pour Favoriser le Dévelopment du Commerce et de l'Industrie en France SA [1993] 1 WLR 509 Barlow Clowes International Ltd v Eurotrust International Ltd [2005] UKPC 37; [2006] 1 WLR 1476 Barnes v Addy (1874) LR 9 Ch App 244 Boensch v Pascoe [2019] HCA 49; 94 ALJR 112 Bowker v Burdekin (1843) 11 M & W 128; 152 ER 744 Brooks v Burns Philp Trustee Co Ltd (1969) 121 CLR 432; [1969] HCA 4 Canson Enterprises Ltd v Boughton & Co [1991] 3 SCR 534 Chickabo Pty Ltd v Zphere Pty Ltd (2019) 57 VR 406; [2019] VSC 73 CSR Ltd v Eddy (2005) 226 CLR 1; [2005] HCA 64 Daebo Shipping Co Ltd v The Ship Go Star (2012) 207 FCR 220; [2012] FCAFC 156 Eaves v Hickson (1861) 30 Beav 136; 54 ER 840 Edmonds v Donovan; Disctronics Ltd v Kingston Links Country Club Pty Ltd (2005) 12 VR 513; [2005] VSCA 27 Elders Trustee and Executor Co Ltd v E G Reeves Pty Ltd (1987) 78 ALR 193 Ermogenous v Greek Orthodox Community of SA Inc (2002) 209 CLR 95; [2002] HCA 8 Expense Reduction Analysts Group Pty Ltd v Armstrong Strategic Management Marketing Pty Ltd (2013) 250 CLR 303; [2013] HCA 46 Farah Constructions Pty Limited v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Federal Commissioner v Taylor (1929) 42 CLR 80; [1929] HCA 13 Fightvision Pty Ltd v Onisforou (1999) 47 NSWLR 473; [1999] NSWCA 323 Fitzgerald v Masters (1956) 95 CLR 420; [1956] HCA 53 Fyler v Fyler (1841) 3 Beav 550; 49 ER 216 Giorgiannai v The Queen (1985) 156 CLR 473; [1985] HCA 29 Giumelli v Giumelli (1999) 196 CLR 101; [1999] HCA 10 Green Growth No 2 Ltd v Queen Elizabeth the Second National Trust [2019] 1 NZLR 161; [2018] NZSC 75 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296; [2012] FCAFC 6 Hall v Bainbridge (1848) 12 QB 698; 116 ER 1032 Harker-Mortlock v Commonwealth Bank of Australia [2019] NSWCA 56 Hasler v Singtel Optus Pty Ltd (2014) 87 NSWLR 609; [2014] NSWCA 266 HDI Global Specialty SE v Wonkana No 3 Pty Ltd [2020] NSWCA 296 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41; [1984] HCA 64 Hospitality Group Pty Ltd v Australian Rugby Union Ltd (2001) 110 FCR 157; [2001] FCA 1040 In re Carile; Dakin v Trustees Executors and Agency Co Ltd [1920] VLR 427 Insurance Australia Ltd t/a NRMA Insurance v Milton [2016] NSWCA 156 Ivey v Genting Casinos (UK) Ltd (t/a Crockfords Club) [2018] AC 391; [2017] UKSC 67 James Adam Pty Ltd v Fobeza Pty Ltd [2020] NSWCA 311 Jenyns v Public Curator (Qld) (1953) 90 CLR 113; [1953] HCA 2 Jin Niu Investments Pty Ltd v Wang (No 2) [2020] NSWSC 649 Kation Pty Ltd v Lamru Pty Ltd [2009] NSWCA 145; 257 ALR 336 Khoury v Government Insurance Office (NSW) (1984) 165 CLR 622; [1984] HCA 55 King Network Group Pty Ltd v Club of the Clubs Pty Ltd [2008] NSWCA 344; 69 ACSR 172 Kronenberg v Bridge (2014) 26 Tas R 359; [2014] TASFC 10 KTC v David (No 1) [2019] NSWSC 281 Lady Naas v Westminster Bank Ltd [1940] AC 366 Lewski v Australian Securities and Investments Commission (2016) 246 FCR 200; [2016] FCAFC 96 Luke v South Kensington Hotel Company (1879) 11 Ch D 121 Marriner v Australian Super Developments Pty Ltd (2012) 46 VR 213; [2012] VSCA 171 Marriner v Australian Super Developments Pty Ltd [2016] VSCA 141 Metropolitan Petar v Mitreski [2012] NSWSC 16 Midgley v Midgley [1893] 3 Ch D 282 Nielsen v Capital Finance Australia Ltd [2014] 2 Qd R 459; [2014] QCA 139 Norberg v Wynrib [1992] 2 SCR 226 O'Brien v Dawson (1941) 41 SR NSW 295 O'Brien v Dawson (1942) 66 CLR 18; [1942] HCA 8 OBG Ltd v Allan [2008] AC 1 Othman v Stanley [2011] VSC 211 Paciocco v Australian and New Zealand Banking Group Ltd [2015] FCAFC 50; 321 ALR 584 Pilmer v Duke Group Ltd (in liq) (2001) 207 CLR 165; [2001] HCA 31 Qantas Airways Ltd v Cameron (1996) 145 ALR 294 Re Coomber; Coomber v Coomber [1911] 1 Ch 723 Re Goile; ex parte Steelbuild Agencies Ltd [1963] NZLR 666 Realtek Holdings Pty Ltd v Wetamast Pty Ltd [2019] NSWSC 1869 Robertson v French (1803) 4 East 130; 102 ER 779 Schmidt v Ahrkalimpa Pty Ltd (receiver appointed) [2020] VSCA 193 Scook v Premier Building Solutions Pty Ltd (2003) 28 WAR 124; [2003] WASCA 263 Segboer v A J Richardson Properties Pty Ltd [2012] NSWCA 253; 16 BPR 31,235 Seymour Whyte Constructions Pty Ltd v Ostwald Bros Pty Ltd (In liquidation) (2019) 99 NSWLR 317; [2019] NSWCA 11 Sino Iron Pty Ltd v Palmer (No 3) [2015] 2 Qd R 574; [2015] QSC 94 Syrimi v Hinds (1996) 6 NTLR 1 Tallerman & Co Pty Ltd v Nathan's Merchandise (Vic) Pty Ltd (1957) 98 CLR 93; [1957] HCA 10 Taouk v Ho [2019] NSWCA 156 THC Holding Pty Ltd v CMA Recycling Pty Ltd [2014] NSWSC 1136; 101 ACSR 202 The Juliana (1822) 2 Dods 504; 165 ER 1560 Thomas v Arthur Hughes Pty Ltd [2015] NSWSC 1027 Trusts & Guarantee Co Ltd v Brenner [1933] SCR 656 Tsaprazis v Goldcrest Properties Pty Ltd [2000] NSWSC 206; 18 ACLC 285 Twigg v Twigg (No 4); Lambert v Twigg Investments Pty Ltd (No 3) [2020] NSWSC 1159 Twinsectra Ltd v Yardley [2002] UKHL 12; [2002] 2 AC 164 Wilson v Frost (1935) 35 SR (NSW) 521 Wollongong Coal Ltd v Gujarat NRE India Pty Ltd (2019) 100 NSWLR 432; [2019] NSWCA 135 Xenos v Wickham (1867) LR 2 HL 296 Yorke v Lucas (1985) 158 CLR 661; [1985] HCA 65 Youyang Pty Ltd v Minter Ellison Morris Fletcher (2003) 212 CLR 484; [2003] HCA 15 Texts Cited: P Davies, Accessory Liability (Hart Publishing, 2015) J Dietrich, "The Liability of Accessories under Statute, in Equity, and in Criminal Law: Some Common Problems and (Perhaps) Common Solutions" (2010) 34(1) Melb Uni L Rev 106 J Dietrich and P Ridge, Accessories in Private Law (Cambridge University Press, 2015) G Dworkin, Odgers' The Construction of Deeds and Statutes (5th ed, Sweet & Maxwell 1967) Hon W Gummow, "Knowing assistance" (2013) 87 ALJ 311 Hon W Gummow, "The Equitable Duties of Company Directors" (2013) 87 ALJ 753 C Harpum, "The Basis of Equitable Liability" in P Birks (ed), The Frontiers of Liability (Oxford University Press, 1994) C Harpum, 'The Stranger as Constructive Trustee', (1986) 102 Law Quarterly Review 114 Rastell, Les Termes de la Ley P Ridge, "Equitable accessorial liability: Moving beyond Barnes v Addy" (2014) 8 Journal of Equity 28 N Seddon, Seddon on Deeds (Federation Press 2015) J Thomson, Commercial Contract Clauses (3rd ed, Thomson Reuters (Professional) Australia Ltd, 2019) D E C Yale, "The Delivery of a Deed" (1970) 28(1) Cambridge Law Journal 52 Category: Principal judgment Parties: Pittmore Pty Ltd (Appellant, second cross-respondent) Edward Pei-Ying Chan (Respondent, cross-appellant) Joo Kee Tan (First cross-respondent) Representation: Counsel: M Christie SC, D Hume (Pittmore and Mr Tan) H K Insall SC, A A Wilson (Mr Chan)