New Island Developments Pty Ltd v New Island Investments One Pty Ltd [2024] NSWSC 226

Supreme Court New South Wales

Medium Neutral Citation: New Island Developments Pty Ltd v New Island Investments One Pty Ltd [2024] NSWSC 226 Hearing dates: 5 – 7 February 2024 Date of orders: 12 March 2024 Decision date: 12 March 2024 Jurisdiction: Equity Before: Rees J Decision: Cross-claim dismissed with costs. Catchwords: CONTRACT – real estate agent and Chinese investors in property development together – proceedings commenced in Commercial List alleging real estate agent misappropriated $9M to buy property in Meadowbank – proceedings settled – agree to sell Meadowbank land – real estate agent to chose selling agent – property to be sold "on terms to be agreed, such agreement not to be unnecessarily withheld" – proper construction of clause – principles at [26]-[29]. BREACH OF CONTRACT – incomplete agency agreement submitted – real estate agent did not respond to queries – whether breach – principles at [86], [87] – time for performance had not yet arrived. WORDS AND PHRASES – "unnecessarily withheld" – "unreasonably withheld" – at [50], [87]. Legislation Cited: Property, Stock and Business Agents Act 2002 (NSW), ss 37, 55(1) Property, Stock and Business Agents Regulation 2014 (NSW), reg 7(1)(a)-(b) Cases Cited: Apand Pty Ltd v The Kettle Chip Co Pty Ltd (1994) 52 FCR 474 Bennett v Minister for Community Welfare (1992) 176 CLR 408 Burns v MAN Automotive (Aust) Pty Ltd (1986) 161 CLR 653 Cherry v Steele-Park (2017) 96 NSWLR 548 Chief Commissioner of State Revenue v Adams Bidco Pty Ltd [2019] NSWCA 34 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 261 CLR 544 EDWF Holdings 1 Pty Ltd v EDWF Holdings 2 Pty Ltd [2010] WASCA 78 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640 Fink v Fink (1946) 74 CLR 127 Fulham Partners LLC v National Australia Bank Ltd (2013) 17 BPR 32,709 Golden Strait Corp v Nippon Yusen Kubishika Kaisha [2007] 2 AC 353 Gulic v Boral Transport Ltd [2016] NSWSCA 269 Hart v MacDonald (1910) 10 CLR 417 Jones v Dunkel (1959) 101 CLR 298 Koufos v C Czarnikow Ltd (The Heron II) [1969] 1 AC 350 Laundy Hotels (Quarry) Pty Ltd v Dyco Hotels Pty Ltd (2023) 407 ALR 613 Margaronis Navigation Agency Ltd v Henry W Peabody & Co of London Ltd [1965] 1 QB 300 McRae v Commonwealth Disposals Commission (1951) 84 CLR 377 Monarch Steamship Co Ltd v A/B Karlshamns Oljefabriker [1949] AC 196 New Standard Energy PEL 570 Pty Ltd v Outback Energy Hunter Pty Ltd [2019] SASCFC 132 Onley v Catlin Syndicate Ltd (as the underwriting member of Lloyd's Syndicate 2003) (2018) 360 ALR 92 Reg Glass Pty Ltd v Rivers Locking Systems Pty Ltd (1968) 120 CLR 516 Secretary of State for Employment v Associated Society of Locomotive Engineers & Firemen (No 2) [1972] 2 QB 455 St Barbara Ltd v Hockley (No 2) [2013] WASC 358 Star Entertainment Group Limited v Chubb Insurance Australia Ltd [2022] FCAFC 16 Unity Insurance Brokers Pty Ltd v Rocco Pezzano Pty Ltd (1998) 192 CLR 603 Wenham v Ella (1972) 127 CLR 454 Wenham v Ella; Smith New Court Securities Ltd v Citibank NA [1997] AC 254 Category: Principal judgment Parties: New Island Investment One Pty Ltd (First Cross-Claimant) Ava Liu (Second Cross-Claimant) New Island Kildare Pty Ltd (Third Cross-Claimant) Maison Global Property Pty Ltd (Fourth Cross-Claimant) MG Investment One Pty Ltd (Fifth Cross-Claimant) New Island Developments Pty Ltd (First Cross-Defendant) New Island Apartments Pty Ltd (Second Cross-Defendant) Youxin Fu (Third Cross-Defendant) Representation: Counsel: L Gor (First to Fourth Cross-Claimants) D Pritchard SC / N Bailey (Cross-Defendants)