J & Z Holding (Aust) Pty Ltd v Vitti Pty Ltd [2022] NSWSC 1718

Supreme Court New South Wales

Medium Neutral Citation: J & Z Holding (Aust) Pty Ltd v Vitti Pty Ltd [2022] NSWSC 1718 Hearing dates: 7 and 8 December 2022 Decision date: 20 December 2022 Jurisdiction: Equity Before: Lindsay J Decision: Subject to allowing the parties an opportunity to be heard as to the form of the orders and costs: (1) DECLARE that the defendants are absolutely entitled to retain the sum of $2,050,000 referred to in the Option Agreement (as amended) as "the Call Option Fee" and in "the contract" created upon exercise of their Put Option as "the deposit". (2) ORDER that the plaintiff's statement of claim otherwise be dismissed Catchwords: LAND LAW — Conveyancing — Options – Put and call option – Classification of a payment as an option fee or a deposit – Payment properly characterised as an option fee for full consideration – Not recoverable as a deposit upon the contract coming to an end otherwise than by completion Legislation Cited: Conveyancing Act 1919 NSW Evidence Act 1995 NSW Cases Cited: Akron Pacific Ltd v Offshore Oil NL (1985) 157 CLR 514 Aslan v Stepanoski [2022] NSWCA 24 Brien v Dwyer (1978) 141 CLR 378 Carr v Keys-Arenas (1981) 2 BPR 9498 Carter v Mehmet [2021] NSWCA 286 CCP Australian Airships Ltd v Primus Telecommunications Pty Ltd [2004] VSCA 232 Codelfa Construction Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337 Doyle v Howey (1990) 6 BPR 13,401 DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423 Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79 Foran v Wight (1989) 168 CLR 385 Howe v Smith (1884) 27 Ch 89 Iannello v Sharpe (2007) 69 NSWLR 452 Kazacos v Shuangling International Development Pty Ltd [2016] NSWSC 1504; 18 BPR 36,353 Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd (1989) 166 CLR 623 Luu v Sovereign Developments Pty Ltd [2006] NSWCA 40; 12 BPR 23,629 McDonald v Dennys Lascelles Ltd (1933) 48 CLR 457 O'Dea v Allstates Leasing System (WA) Pty Ltd (1983) 152 CLR 359 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451 Proctor v Chahl [2008] NSWSC 1252 Shevill v Builders Licensing Board (1982) 149 CLR 620 Toll (FGCT) Pty Ltd v AlphaPharm Pty Ltd (2004) 219 CLR 165 Velik v Steningold [2013] NSWCA 303 Workers Trust & Merchant Bank Ltd v Dojap Investments Ltd [1993] AC 573 Category: Principal judgment Parties: Plaintiff: J & Z Holding (Aust) Pty Ltd ACN 620 110 287 First Defendant: Vitti Pty Ltd ACN 089 324 649 Second Defendant: Michael Patrick Hannah Third Defendant: Janet Lee Santwire Representation: Counsel: Plaintiff: GA Sirties SC and PD Reynolds Defendants: RS Angyal SC