McLaughlin v Cunningham [2023] NSWSC 350

Supreme Court New South Wales

Medium Neutral Citation: McLaughlin v Cunningham [2023] NSWSC 350 Hearing dates: 20 – 21 March 2023 Decision date: 06 April 2023 Jurisdiction: Equity - Real Property List Before: Peden J Decision: Orders appointing trustees for sale made under s 66G Conveyancing Act 1919 (NSW): see [150] Catchwords: LAND LAW — Co-ownership — Statutory trust for sale — Appointment of trustees — Where business partners conducted a business out of a commercial property — Where relationship between the business partners broke down — Where business partners on title as joint tenants rather than the company — Whether sale should not be ordered — Where otherwise no dispute as to formal requirements concerning trustee appointment CIVIL PROCEDURE — Jurisdiction — Inherent jurisdiction — Abuse of process — Whether proceedings seeking trustee sale of property were abuse of process — Where current proceedings in the Corporations List concerning breaches of directors' duties — Where one co-owner's proceeds of sale of the property would be paid into court pursuant to an undertaking CONTRACT — Formation — Whether contract should be inferred between the parties and the company — Where the terms of such a contract to be inferred were that the parties would continue to lease the property to the company and company would pay rent — Where no contract could be inferred ESTOPPEL — Estoppel by convention — Mutual assumption — Where limited evidence of the parties adopting a mutual assumption — Where limited evidence as to detriment — Where promissory estoppel relied on in the alternative and rejected for similar reasons EQUITY — Unconscionable conduct — Special disability or disadvantage — Where the weaker party was said to be a corporation — Where the corporation was not otherwise party to the proceedings — Where no special disadvantage was demonstrated Legislation Cited: Conveyancing Act 1919 (NSW) ss 54A, 66F, 66G Corporations Act 2001 (Cth) ss 181-184 Cases Cited: Air Great Lakes v KS Easter (Holdings) (1985) 2 NSWLR 309 Antov v Bokan (No 2) [2019] NSWCA 250 Antov v Bokan [2018] NSWSC 1474 Arrow Custodians Pty Ltd v Pine Forests of Australia Pty Ltd (2015) 18 BPR 35 Ashton v Pratt (2015) 88 NSWLR 281 Austotel Pty Ltd v Franklins Selfserve Pty Ltd (1989) 16 NSWLR 582 Australian Financial Services and Leasing Pty Ltd v Hills Industries Ltd [2014] HCA 14; 253 CLR 560 Bautistos v Roads v Traffic Authority (NSW) (2006) 226 CLR 256 Bondi Beach Astra Retirement Village Pty Ltd v Gora (2011) 82 NSWLR 665 Branir Pty Ltd v Owston Nominees [No 2] Pty Ltd (2001) 117 FCR 424 Caboche v Ramsay [1993] FCA 920 Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447 Commonwealth Bank of Australia v Ridout Nominees Pty Ltd [2000] WASC 37 Commonwealth v Verwayen (1990) 170 CLR 394 Crown Melbourne Ltd v Cosmopolitan Hotel (Vic) Pty Ltd (2016) 260 CLR 1 Delaforce v Simpson-Cook (2010) 78 NSWLR 483 Foundas v Arambatzis [2020] NSWCA 47 GC NSW Pty Ltd v Galati [2020] NSWCA 326 Hall v Busst (1960) 104 CLR 206 HECEC Australia Pty Ltd v Hydro-Electric Corp [1999] FCA 822 Joelco Pty Ltd v Balanced Securities Limited [2009] QSC 236 Maddison v Alderson (1883) 8 App Cas 467 Maxwell-Smith v S & E Hall Pty Ltd (2014) 86 NSWLR 481 McBride v Sandiland (1918) 25 CLR 69 Moratic Pty Ltd v Gordon [2007] NSWSC 5 Muschinski v Dodds (1985) 160 CLR 583 National Australia Bank Limited v Pasupati [2011] NSWSC 540 Nitopi v Nitopi [2022] NSWCA 162 Nullagine Investments Pty Ltd v Western Australian Club Inc (1993) 177 CLR 635 Pacific Carriers v BNP Paribas (2004) 218 CLR 451 Pascoe v Dyason [2011] NSWSC 1217 Pipikos v Trayans (2018) 265 CLR 522 Re Day (2017) 91 ALJR 262 Ryledar Pty Ltd v Euphoric Pty Ltd (2007) 69 NSWLR 603 Stibbard-Leaver v Leaver [2021] NSWSC 65 Stubbings v Jams 2 Pty Ltd [2022] HCA 6 Suncorp-Metway Ltd v Nam Property Holdings Pty Ltd [2010] NSWSC 1078 Tory v Tory [2007] NSWSC 1078 Walton Stores (Interstate) Ltd v Maher (1988) 164 CLR 381 Wang v Zhao [2012] NSWSC 706 Weston v Publishing and Broadcasting Ltd [2011] NSWSC 433 Williams v Spautz (1992) 174 CLR 509 Williams v Williams [1979] 1 NSWLR 376 Wilson v Arwon Finance Pty Ltd [2020] WASCA 137 Woodson (Sales) v Woodson (Aust) (1996) 7 BPR 14,685 Texts Cited: Ford, Austin and Ramsay's Principles of Corporations Law (LexisNexis, Service 88) Greg Tolhurst, Assignment of Contractual Rights (2nd ed, 2016, Bloomsbury) Category: Principal judgment Parties: Gregory John McLaughlin (Plaintiff) Myke Francis Cunningham (Defendant) Representation: Counsel: B Koch (Plaintiff) T Rollo (Defendant)