D Capital 2 Pty Ltd v Western [2022] NSWSC 1064

Supreme Court New South Wales

Medium Neutral Citation: D Capital 2 Pty Ltd v Western [2022] NSWSC 1064 Hearing dates: 11–15 and 18 July 2022 Decision date: 12 August 2022 Jurisdiction: Equity - Real Property List Before: Meek J Decision: Plaintiff's claim dismissed; Cross-claim upheld. Parties to bring in short minutes. Catchwords: VENDOR AND PURCHASER – Put and call option deeds – block of 10 units sold in one line – interdependence of contracts – single conveyancer authorised to liaise with buyer and give permissions and receive notices under deeds – option period extended – initial buyer nominates corporate entity of which vendors' agent is sole director and shareholder unbeknownst to vendors – but known to vendors' conveyancer – contracts exchanged and notices to complete issued – dispute regarding notices and termination and ability of buyer to complete VENDOR AND PURCHASER – Principles regarding electronic conveyancing – PEXA – co-operation requirements – principles regarding completion and tender of performance in electronic settlement – nomination of a particular hour of the day for completion – construed as a matter of convenience – whole day available to complete VENDOR AND PURCHASER – duty of care owed by a conveyancer ordinarily excludes financial and commercial advice – agency obligations of conveyancer CONTRACTS – Conveyancing – Principles regarding notices to complete – Making time of the essence – Requirements of form and content of notices – Construction of notices to complete – Equitable context to requirements for a valid notice – Whether failure to intimate a right to terminate invalidates notice CONTRACTS – Notices to complete – whether purported nomination of place of settlement other than completion in electronic workspace invalidates notice EQUITY – Equitable remedies – Differences as between common law and equity as to time stipulations – Whether vendors waved essentiality of time or elected to affirm the contracts EQUITY – Equitable remedies – Specific performance – Whether vendors ready, willing and able to complete – Requirements of readiness in electronic conveyancing and workspace – Whether alleged late provision of settlement adjustment details precludes readiness – Dispute regarding default interest claim – Whether vendors' interest in preferring to sell elsewhere demonstrates lack of willingness to complete and precludes entitlement to terminate EQUITY – Equitable remedies – Defences to specific performance – Whether purchaser had available finance – Dispute regarding whether purchaser had unconditional or sufficient finance – Whether purchaser ready, willing and able to complete AGENTS – fiduciary duties of disclosure – duration of obligations of agents CONTRACTS – Illegality – Contract entered into in contravention of s 49 Property Stock and Business Agents Act 2002 (NSW) – Whether legislation has effect of making void or voidable contracts of sale EQUITY – Equitable remedies – Defences to specific performance – Unclean hands – different effects of doctrine of illegality and maxim of unclean hands – Whether unclean hands permanently disbars equitable relief – "washing one's hands" – "Washing" by imposing terms on specific performance EQUITY – Equitable remedies – Defences to specific performance – Delay EVIDENCE – Admissibility of evidence of what a party would have done in a hypothetical situation INTERPRETATION – What use can be made of extrinsic materials – Second Reading Speeches Legislation Cited: Australian Consumer Law (NSW), ss 18, 26, 236, 239 Civil Liability Act 2002 (NSW), ss 5D, 5O, Pt 4 Conveyancers Licensing Act 2003 (NSW), s 4 Conveyancing Act 1919 (NSW), ss 13, 55 Crimes Act 1900 (NSW), ss 249B, 249F Duties Act 1997 (NSW) Interpretation Act 1987 (NSW), ss 33, 34 Law Reform (Miscellaneous Provision) Act 1965 (NSW), s 9 Legal Profession Uniform Law (NSW), Pt 2.1 Liquor Act 2007 (NSW), s 92 Property and Stock Agents Act 2002 (NSW), ss 3, 3A, 8, 28, 32, 37, 43, 46, 47, 48, 49, 52, 53, 55, 119, 120, 191, 192, 207, 211, 212, 219, Pt 3 Div 4, Pt 8 Div 3, Pt 12, Pt 13 Property Law Act 1974-1982 (Qld) Cases Cited: Agricultural and Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570; [2008] HCA 57 Australian Competition and Consumer Commission v Baxter Healthcare Pty Ltd (2007) 232 CLR 1; [2007] HCA 38 Auzora Pty Ltd v Commissioner of Office of Business and Consumer Affairs (2009) 105 SASR 378; [2009] SASC 344 Balog v Crestani (1975) 132 CLR 289; [1975] HCA 16 Barnes v Addy (1874) LR 9 Ch App 244 Beach Petroleum NL v Johnson (1993) 43 FCR 1; [1993] FCA 392 Benson v MacLachlan t/as Sterling Conveyancers [2001] NSWCA 263 Black Uhlans Incorporated v New South Wales Crime Commission [2002] NSWSC 1060 Breen v Williams (1996) 186 CLR 71; [1996] HCA 57 Brickenden v London Loan & Savings Co [1934] 3 DLR 465; [1934] 2 WWR 545 Canning v Temby (1905) 3 CLR 419; [1905] HCA 45 Carringville Pty Ltd v Gatto Group Pty Ltd [2003] NSWSC 123; (2003) 11 BPR 21,069 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337; [1982] HCA 24 Commercial Union Insurance Company of Australia Limited v Ferrcom Pty Ltd (1991) 22 NSWLR 389 Commonwealth Bank of Australia v Barker (2014) 253 CLR 169; [2014] HCA 32 Commonwealth v Verwayen (1990) 170 CLR 394; [1990] HCA 39 Craine v Colonial Mutual Fire Insurance Co. Ltd (1920) 28 CLR 305; [1920] HCA 64 Cromarty Resources Pty Ltd v Thalanga Copper Mines Pty Ltd [2021] NSWCA 284 Culjak v Akrawe [2022] NSWSC 949 Davison v Staley (Supreme Court (NSW), 21 August 1986, unrep) Dewhirst v Edwards [1983] 1 NSWLR 34 Durham v Durham (2011) 80 NSWLR 335; [2011] NSWCA 62 Equuscorp Pty Ltd v Haxton (2012) 246 CLR 498; [2012] HCA 7 ex parte Robertson [1983] 1 Qd R 526 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2017) 230 CLR 89; [2007] HCA 22 Foran v Wright (1989) 168 CLR 385; [1989] HCA 51 Galafassi v Kelly (2014) 87 NSWLR 119; [2014] NSWCA 190 Gnych v Polish Club Ltd (2015) 255 CLR 414; [2015] HCA 23 Hearse v Pallister [2009] NSWSC 807 In the matters of Earth Civil Australia Pty Ltd, RCG CBD Pty Ltd, Bluemine Pty Ltd, Diamondwish Pty Ltd and Rackforce Pty Ltd (all in liq) [2021] NSWSC 966 James v Hill [2004] NSWCA 301 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Kation Pty Ltd v Lamru Pty Ltd [2009] NSWCA 145; (2009) 257 ALR 336 Lamshed v Lamshed (1963) 109 CLR 440; [1963] HCA 60 Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd (1989) 166 CLR 623; [1989] HCA 23 Lewis v Nortex Pty Ltd (In Liq) [2003] NSWSC 354 Lewis v Nortex Pty Ltd (In Liq) [2004] NSWSC 1143; (2004) ALR 634 Liu v Liu [2022] NSWCA 67 Loughran v Loughran 292 US 216 (1934) Louinder v Leis (1982) 149 CLR 509; [1982] HCA 28 Mahoney v Lindsay (1980) 33 ALR 601 Manufacturers House Pty Ltd v Ashington No 147 Pty Ltd [2005] NSWSC 767; (2005) 12 BPR 23,913 Master Education Services Pty Ltd v Ketchell (2008) 236 CLR 101; [2008] HCA 38 Meng v Wang [2022] NSWSC 833 Meyers v Casey (1916) 17 CLR 90; [1913] HCA 50 Morgan v Beeby [1968] 2 NSWR 609 Naumburger v Berger [2021] NSWSC 903 Nelson v Nelson (1995) 184 CLR 538; [1995] HCA 25 O'Brien v Dawson (1941) 41 SR (NSW) 295 Ocean City Realty Ltd v A & M Holdings Ltd (1987) 36 DLR (4th) 94; 44 RPR 312 (BCCA) Ogle v Comboyuro Investments Pty Ltd (1976) 136 CLR 444; [1976] HCA 21 Orr v Ford (1989) 167 CLR 316; [1989] HCA 4 Paclyn v Harris Real Estate Pty Ltd (1988) NSW ConvR 55-418 Parker v Mckenna (1874) LR 10 Ch App 96 Pearce v Kelly (1919) 20 SR (NSW) 88 Perpetual Trustee Company Ltd v Ishak [2012] NSWSC 697 Philips v William Whiteley Ltd [1938] 1 All ER 566 Raso v Dionigi (1993) 100 DLR (4th) 459 REW08 Projects Pty Ltd v PNC Lifestyle Investments Pty Ltd (2017) 95 NSWLR 458; [2017] NSWCA 269 Rhodes v Badenach [2000] TASSC 160 Roach v Page (No.37) [2004] NSWSC 1048 Rosenberg v Percival (2001) 205 CLR 434; [2001] HCA 18 Saravinovksa v Saravinovski (No 6) [2016] NSWSC 964 Scarf v Jardine (1882) 7 App Cas 345 Shenstone v Hewson (No 2) (1928) 29 SR (NSW) 39 St John Shipping Corporation v Joseph Rank Shipping Ltd [1957] 1 QB 267 Stambolziovski v Nestorovic and Camanaro Prestige Properties Pty Ltd t/as Sydneyhome Real Estate [2015] NSWCA 332 Stanley v Director of Public Prosecutions (NSW) [2021] NSWCA 337; (2021) 398 ALR 355 Stealth Enterprises Pty Ltd t/as The Gentlemen's Club v Calliden Insurance Limited [2017] NSWCA 71 Stickney v Keeble [1915] AC 386 Taylor v Raglan Developments Pty Ltd [1981] 2 NSWLR 117 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 Trani v Trani (No 2) (2019) 59 VR 362; [2019] VSC 723 Tropical Traders Ltd v Goonan (1964) 111 CLR 41; [1964] HCA 20 United Scientific Holdings Ltd v Burnley Borough Council [1978] AC 904 Vandyke v Vandyke (1976) 12 ALR 621 Warman International Ltd v Dwyer (1985) 182 CLR 544; [1995] HCA 18 Wilde v Anstee (1999) 48 NSWLR 387; [1999] NSWSC 612 Wright v Featherstone (1984) Q Conv R 54-118 Yango Pastoral Co Pty Ltd v First Chicago Australia Ltd (1978) 139 CLR 410; [1978] HCA 42 Texts Cited: A E V, "Contracts for the Sale of Land — Stipulations as to Time" (1965) 39 ALJ 63 Conveyancing Service New South Wales (LexisNexis) G E Dal Pont, Law of Agency, (4th ed, 2020, LexisNexis) I C F Spry, The Principles of Equitable Remedies (9th ed, Lawbook Co, 2014) J D Heydon and M J Leeming, Jacobs' Law of Trusts in Australia (8th ed, 2016, LexisNexis) J D Heydon, Heydon on Contract (2019, LexisNexis) J D Heydon, M J Leeming and P G Turner, Meagher, Gummow & Lehane's Equity: Doctrines & Remedies (5th ed, 2014, LexisNexis) Peter Butt, The Standard Contract for Sale of Land in New South Wales (2nd ed, 1998, LBC Information Services) Peter Young, Clyde Croft and Megan Smith, On Equity (2009, Lawbook Co) Roy Milner Stonham, Vendor and Purchaser (1964, Law Book Co) Sharon Christensen and W D Duncan, "To tender or not to tender: When is a party ready, willing and able for electronic settlement?" (2016) 25 APLJ 22 W F Foster, "Dual Agency: Its Implications for the Real Estate Brokerage Industry", Meredith Memorial Lectures, Current Problems in Real Estate (1989) Category: Principal judgment Parties: D Capital 2 Pty Ltd (Plaintiff) Elisa Kim Western (First Defendant / First Cross-Defendant) Kane Bruce Parker (Second Defendant / First Cross-Claimant) Andrew Tuck Whye Hew (Third Defendant / Second Cross-Claimant) Daniel Young (Fourth Defendant / Third Cross-Claimant) Joanne Therese Hopwood (Fifth Defendant / Fourth Cross-Claimant) MALK Property Pty Ltd (Sixth Defendant / Fifth Cross-Claimant) Jason Luke Szepes (Seventh Defendant / Sixth Cross-Claimant) Daniel Gordon O'Connell (Eighth Defendant / Seventh Cross-Claimant) Zaher Tayyar (Nineth Defendant) Step by Step Conveyancing Pty Ltd (Tenth Defendant / Second Cross-Defendant) Wayne Danckert (Third Cross-Defendant) Representation: Counsel: J C Kelly SC / G W Stapleton (Plaintiff and Third Cross-Defendant) D A Allen (First and Eighth Defendants) M R Pesman SC / A D Crossland (Second to Seventh and Nineth Defendants) J V Gooley (Tenth Defendant) Solicitors: HFW Australia (Plaintiff and Third Cross-Defendant) Avondale Lawyers (First and Eighth Defendants) Watson Law (Second to Seventh and Nineth Defendants) Maccallum Lawyers (Tenth Defendant) File Number(s): 2021/257791