City Pacific Ltd (in liq) v CBRE (V) Pty Ltd [2021] NSWSC 456

Supreme Court New South Wales

Medium Neutral Citation: City Pacific Ltd (in liq) v CBRE (V) Pty Ltd [2021] NSWSC 456 Hearing dates: 2-5 September 2019; 24 October 2019 Date of orders: 30 April 2021 Decision date: 30 April 2021 Jurisdiction: Common Law Before: Walton J Decision: The Court makes the following orders: (1) The plaintiffs shall file and serve within 14 days of the date of this judgment short minutes of order reflecting this judgment. (2) The plaintiffs shall file and serve within 28 days of this judgment any submissions and evidence as to any disputed question as to interest and costs together with the terms of any orders proposed with respect to those disputed matters. (3) The defendants shall file and serve any submissions and evidence in reply as to any disputed questions, together with the terms of any proposed orders in that respect, within 14 days after being served with the submissions and evidence in (2) above. Catchwords: VALUATION – valuation of marina – valuation retainers – practice standards MISLEADING AND DECEPTIVE CONDUCT – s 52 of Trade Practices Act 1975 (Cth) – s 12DA of Australian Securities and Investment Commission Act 2001 (Cth) – s18 of the Australian Consumer Law – representations in valuation reports – failure to adopt appropriate valuation methodology – failure to explain and cross check methodology – gross overvaluation BREACH OF DUTY – duty of care – breach of duty of care – failure to take precautions against identified risks of harm – valuation not based on reasonable opinion of the value of marina – not product of reasonable care and skill – defendants knew or ought to have known if plaintiffs advanced monies in excess of value NEGLIGENCE – actual reliance – reasonableness CAUSATION – causation arising from breach of duty by misleading and deceptive conduct DEFENCES – statutory time limitations – mitigation – contributory negligence – proportional liability – s 601FS of the Corporations Act 2001 (Cth) DAMAGES – Martha Cove Property Monies – interest – costs Legislation Cited: Australian Consumer Law Australian Securities and Investments Commission Act 2001 (Cth) Civil Procedure Act 2005 (NSW) Corporations Act 2001 (Cth) Evidence Act 1995 (NSW) Limitation of Actions Act 1958 (Vic) Trade Practices Act 1975 (Cth) Wrongs Act 1958 (Vic) Cases Cited: ABN Amro Bank NV v Bathurst Regional Council (2014) 309 ALR 445; [2014] FCAFC 65 Adelaide Bank Limited v DTS Property Services Pty Ltd [2008] NSWSC 1328 Amadio Pty Ltd v Henderson (1998) 81 FCR 149; [1998] FCA 823 APF Properties Pty Ltd v Kestrel Holdings Pty Ltd (No 2) [2007] FCA 1561 Arcus Shopfitters Pty Ltd v Western Australian Planning Commission [2004] WASC 85 Australian Breeders Co-operative Society Ltd v Jones (1997) 26 ASCR 26; [1997] FCA 1405 Australian Competition and Consumer Commission v TPG Internet Pty LTD (2013) 250 CLR 640; [2013] HCA 54 Australian Securities and Investments Commission v Hellicar (2012) 247 CLR 345; [2012] HCA 17 Australian Securities and Investments Commission v Vines (2003) 48 ACSR 291; [2003] NSWSC 1095 Bone v Wallalong Investments [2012] NSWSC 137 Briess v Woolley [1954] AC 333 BT Australia Ltd v Raine & Horne Pty Ltd [1983] 3 NSWLR 221 Commercial Banking Co of Sydney v R H Brown & Co (1972) 126 CLR 337 Coris and Investments Ltd v Druce & Co [1978] 2 EGLR 86 Derring Lane Pty Ltd v Fitzgibbon (2007) 16 VR 563; [2007] VSCA 79 Dunn v Hanson Australasia Pty Ltd (2017) 12 ACTLR 138 Esanda Finance Corporation Ltd v Peat Marwick Hungerfords (1997) 188 CLR 241 Fitzwood Pty Ltd v Unique Goal Pty Ltd (in liquidation) [2001] FCA 1628 Flemington Properties Pty Ltd v Raine & Horne Commercial Pty Ltd (1997) 148 ALR 271; [1997] FCA 788 Genworth Financial Mortgage Insurance Pty Limited v Hodder Rook & Associates Pty Limited [2010] NSWSC 1043 Google Inc v Australian Competition and Consumer Commission (2013) 249 CLR 435; [2013] HCA 1 Gould v Vaggelas (1985) 157 CLR 215; [1985] HCA 75 Hann Nominees Pty Ltd v National Australia Bank Ltd [2000] FCA 454 Hawkins v Clayton (1988) 164 CLR 539 Henville v Walker (2001) 206 CLR 459; [2001] HCA 52 HTW Valuers (Central QLD) Pty Ltd v Astonland Pty Ltd (2004) 217 CLR 640; [2004] HCA 54 Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd (2013) 247 CLR 613 I & L Securities Pty Limited v R S Melloy Pty Limited [2002] QSC 306 Interchase Corporation Ltd v ACN 010 087 573 Pty Ltd [2003] 1 Qd R 26 Israel v Foreshore Properties Pty Limited (in liq) (1980) 30 ALR 631 Kenny & Good Pty Ltd v MGICA (1992) Ltd (1999)199 CLR 413; [1999] HCA 25 Kestrel Holdings Pty Ltd v APF Properties Pty Ltd (2009) 260 ALR 418 Khoury v Coffey Projects (Australia) Pty Ltd [2015] NSWCA 371 Laws v Australian Broadcasting Tribunal (1990) 170 CLR 70; [1990] HCA 31 Lloyd v Grace, Smith & Co [1912] AC 716 Makita (Australia) Pty Ltd v Sprowles (2001) 52 NSWLR 705; [2001] NSWCA 305 MGICA (1992) Ltd v Kenny & Good Pty Ltd (1996) 140 ALR 313; [1996] FCA 766 Murphy v Overton Investments Pty Ltd (2004) 216 CLR 388 O3 Capital Pty Limited v WY Properties Pty Limited (2016) 49 WAR 517; [2016] WASCA 82 Perre v Apand Pty Ltd (1999) 198 CLR 180; [1999] HCA 36 Pine River Pty Ltd v Scorda [2001] WASC 105 Propell National Valuers (WA) Pty Ltd v Australian Executor Trustees Limited (2012) 202 FCR 158; [2012] FCAFC 31 Roads & Traffic Authority of NSW v Dederer (2007) 234 CLR 330; [2007] HCA 42 Robinson v 470 St Kilda Road Pty Ltd (2018) 263 FCR 572 Ross v Cook [2009] NSWSC 671 Ryan Wealth Holdings Pty Ltd v Baumgartner (2018) 131 ASCR 236; [2018] NSWSC 1502 Salomon v Salomon & Co Ltd [1897] AC 22 Segal t/as Segal Litton & Chilton v Fleming [2002] NSWCA 262 Singer & Friedlander Ltd v John D Wood & Co [1977] 2 EGLR 84 Spencer v Commonwealth of Australia (1907) 5 CLR 418 Ta Ho Ma Pty Ltd v Allen [1999] NSWCA 202 Tepko Pty Ltd v Water Board (2001) 206 CLR 1; [2001] HCA 19 Tomasetti v Brailey (2012) 91 ATR 531 Trade Credits Ltd v Baillieu Knight Frank (NSW) Pty Ltd (1985) Aus Torts Rep 69 Wallace v Kam (2013) 250 CLR 375 Wardley Australia Limited v Western Australia (1992) 175 CLR 514; [1992] HCA 55 Winnote Pty Ltd v Page (2006) 68 NSWLR 531; [2006] NSWCA 287 Texts Cited: C Lockhart, The Law of Misleading or Deceptive Conduct (2019, 5th ed, Lexis Nexis Butterworths) K Mason, J W Carter and G J Tolhurst, Mason and Carter's Restitution Law in Australia (2008, 2nd ed, LexisNexis Butterworths) Category: Principal judgment Parties: City Pacific Ltd (in liq) (First Plaintiff) Martha Cove Marina Pty Ltd (in liq) (Second Plaintiff) CBRE (V) Pty Ltd (First Defendant) Christopher Nicodimou (Second Defendant) Representation: Counsel: J C Giles SC with B G Curtin (Plaintiffs) D A Lloyd SC with V Bulut (Defendants)