The Property Investors Alliance Pty Ltd v C88 Project Pty Ltd (in liq) [2022] NSWSC 1081

Supreme Court New South Wales

Medium Neutral Citation: The Property Investors Alliance Pty Ltd v C88 Project Pty Ltd (in liq) [2022] NSWSC 1081 Hearing dates: 23 June 2022, 1 July 2022 Date of orders: 12 August 2022 Decision date: 12 August 2022 Jurisdiction: Equity - Commercial List Before: Rees J Decision: Prayers for relief dismissed with costs. Catchwords: RECTIFICATION – principles at [72]-[75] – agent seeks rectification of agency agreement to secure repayment of commissions earnt prior to agreement – whether proof of common intention – evidence falls short of clear and convincing proof – no common intention – agency agreement not rectified. EQUITY – equitable charge – right to lodge caveat – real estate agent and property developer enter into agency agreements on large development – agent owed $3M commission for apartments already sold –– agent requests 'security' when negotiating further agency agreement – agent drafts caveat clauses 'to protect' commission – whether implied equitable charge – principles and case law review at [91]-[112] – no objective, contractual intention to confer proprietary interest – no equitable charge. REAL ESTATE AGENT – agency agreements – whether unenforceable for illegality – Property and Stock Agents Act 2002 (NSW) s 49(1) – agent must not obtain beneficial interest in property – exemption if client consents in approved form – contravention of s 49(1) does not render agency agreement unenforceable per se – client consents by agency agreement but not in approved form – agreement enforceable. Legislation Cited: Conveyancing Act 1919 (NSW), s 23C Corporations Act 2001 (Cth) Property and Stock Agents Act 2002 (NSW), s 49 Cases Cited: Aged Care Services Pty Ltd v Kanning Services Pty Ltd (2013) 86 NSWLR 174; [2013] NSWCA 393 Aged Care Services v Macedonian Aged Care [2012] NSWSC 531 Arthur Yates & Company Pty Ltd v Vegetable Seeds Committee (1945) 72 CLR 37 Australian Gypsum Ltd & Australian Plaster Co Ltd v Hume Steel Ltd (1930) 45 CLR 54 Brambles Holdings Limited v Bathurst City Council (2001) 53 NSWLR 153; [2001] NSWCA 61 Breen v Williams (1996) 186 CLR 71; [1996] HCA 57 Burke v LFOT Pty Ltd (2002) 209 CLR 282; [2002] HCA 17 Bush v National Australia Bank (1992) 35 NSWLR 390 Challenger Property Asset Management Pty Ltd v Stonnington City Council (2011) 34 VR 445; [2011] VSC 184 Chan v Zacharia (1984) 154 CLR 178 Cinema Plus Ltd v Australia and New Zealand Banking Group Ltd (2000) 49 NSWLR 513; [2000] NSWCA 195 Clay v Clay (2001) 202 CLR 410; [2001] HCA 9 Coleman v Bone (1996) 9 BBR 16,235 Commissioner of Stamp Duties (NSW) v Carlenka (1995) 41 NSWLR 329 Dalgety and New Zealand Loan Limited v C Imeson Pty Ltd [1964] NSWR 638; [1963] SR (NSW) 998 Fabre v Arenales (1992) 27 NSWLR 437 Fitzgerald v FJ Leonhardt Pty Ltd (1997) 189 CLR 215; [1997] HCA 17 Ghazal v Government Insurance of New South Wales (1992) 29 NSWLR 336 Guan v Lui [2021] NSWCA 65 Gynch v Polish Club Ltd (2015) 255 CLR 414; [2015] HCA 23 Igloo Homes Pty Ltd v Sammut Constructions Pty Ltd [2005] NSWCA 280 In the matter of C88 Project Pty Ltd [2022] NSWSC 126 In the matter of Swan Services Pty Ltd (in liq) [2016] NSWSC 1724; (2016) 12 BFRA 224 In the matter of Westpac Banking Corporation [2015] NSWSC 869; (2015) 18 BPR 35,501 Johns v Australian Securities Commission (No 2) (1992) 35 FCR 146 Jones v Dunkel (1959) 101 CLR 298 Lym International Pty Limited v Marcolongo [2011] NSWCA 303; (2011) 15 BPR 29,465 Maralinga Pty Ltd v Major Enterprises Pty Ltd (1973) 128 CLR 336 Morris Finance Ltd v Free [2017] NSWSC 1417; (2017) 18 BPR 37,223 Murphy v Wright [1992] NSWCA 168; [1992] NSW ConvR 55-652; (1992) 5 BPR 11,734 National Provincial and Union Bank of England v Charnley [1924] 1 KB 431 Nelson v Nelson (1995) 184 CLR 538; [1995] HCA 25 Newey v Westpac Banking Corporation [2014] NSWCA 319 Parker v McKenna (1874) LR 10 Ch App 96 Payne v Parker [1976] 1 NSWLR 191 Pedersen v Larcombe [2008] NSWSC 1362 Pilmer v Duke Group Ltd (in liq) (2001) 207 CLR 165; [2001] HCA 31 Redglove Projects v Ngunnawal Local Aboriginal Council [2004] NSWSC 880 Roberts v Investwell Pty Ltd (in liq) [2012] NSWCA 134; (2012) 88 ACSR 689 Rockcote Enterprises Pty Ltd v FS Architects Pty Ltd [2008] NSWCA 39 Ronchi v Portland Smelter Services Ltd [2005] VSCA 83 Ryde Developments Pty Ltd v The Property Investors Alliance Pty Ltd (No 4) [2017] NSWSC 436 Simic v New South Wales Land and Housing Corp (2016) 260 CLR 85; [2016] HCA 47 Sino-Resource Imp & Exp Co Ltd v Oakland Investment Group Ltd [2018] QSC 98 Swinburne v Bose [2016] WASC 299 Swiss Bank Corporation v Lloyd's Bank Limited [1982] AC 584 Ta Lee Investment Pty Limited v Antonios [2019] NSWCA 24; (2019) 19 BPR 39153 Taleb v National Australia Bank Ltd (2011) 82 NSWLR 489; [2011] NSWSC 1562 The Property Investors Alliance Pty Ltd v C88 Project Pty Ltd [2021] NSWSC 1175 Troncone v Aliperti (1994) 6 BPR 97,455 Yango Pastoral Co Pty Ltd v First Chicago Australia Ltd (1978) 139 CLR 410 Texts Cited: Carter, JW, Contract Law in Australia (7th ed, 2018, LexisNexis) NSW Legislative Assembly, Parliamentary Debates (Hansard), 9 May 2002 at 1964-1970 Tyler, Young & Croft, Fisher & Lightwood's Law of Mortgage (3rd Australian ed, 2013, LexisNexis) Wigmore, JH, Wigmore on Evidence (3rd ed., 1940, Little, Brown and Co.) Category: Principal judgment Parties: The Property Investors Alliance Pty Ltd (Plaintiff) C88 Project Pty Ltd (First Defendant) VADO005 Pty Ltd (Second Defendant) The Trust Company (Australia) Ltd (Third Defendant) Wajo Investments Pty Ltd (Fourth Defendant) Representation: Counsel: Mr SA Lawrance SC / Mr JC Lee (Plaintiff) Mr D Neggo (First Defendant)