Evagelakos v UPG 318 Pty Ltd [2024] NSWSC 1179

Supreme Court New South Wales

Medium Neutral Citation: Evagelakos v UPG 318 Pty Ltd [2024] NSWSC 1179 Hearing dates: 14 August 2024 Date of orders: 20 September 2024 Decision date: 20 September 2024 Jurisdiction: Equity - Expedition List Before: Rees J Decision: Refuse order for specific performance against guarantor. Catchwords: SPECIFIC PERFORMANCE – contract for sale of land for $20.6 million – purchaser is special purpose vehicle with $100 issued share capital – sole director of purchaser guarantees "observance by the Purchaser" of the contract's terms – whether specific performance available against guarantor – principles at [21]-[30] – guarantor did not undertake to render performance if the purchaser did not. INDEMNITIES – guarantor agrees to indemnify vendor "from and against all damages and losses" arising from breach of contract – whether vendor entitled to specific performance against guarantor to pay the balance of the purchase price – "damages and losses" does not mean the balance of the purchase price – specific performance of indemnity not warranted where damages are adequate remedy and the only obligation of the indemnifier in any event. WORDS AND PHRASES – "observe" – "observation" – at [37]-[42]. Cases Cited: Allcott Hire Pty Ltd v Silk [2016] NSWSC 1135 Andar Transport Pty Ltd v Brambles Ltd [2004] HCA 28 Ankar Pty Ltd & Arnick Holdings Ltd v National Westminster Finance (Australia) Ltd (1987) 162 CLR 549 Ayling v Wade [1961] 2 All ER 399 Bowman Development Corp Pty Ltd v Young Forever Property Pty Ltd (No 2) [2020] QDC 073 Brighton Automotive Holdings Pty Ltd v Honda Australia Pty Ltd (No 2) [2024] VSC 262 Burns v MAN Automotive (Aust) Pty Ltd (1986) 161 CLR 653; [1986] HCA 81 Canty v Paperlinx Australia Pty Ltd [2014] NSWCA 309 Chapmans Ltd v Australian Stock Exchange Limited (1996) 67 FCR 402 Commercial Bank of Australia Ltd v Colonial Finance Mortgage & Investment & Guarantee Corporation Ltd (1906) 4 CLR 57 Erect Safe Scaffolding (Australia) Pty Ltd v Sutton (2008) 72 NSWLR 1 Fairborne Pty Ltd v Strata Store Noosa Pty Ltd [2009] QSC 250 Firma C-Trade SA v Newcastle Protection & Indemnity Association [1991] 2 AC 1 Gujarat NRE India Pty Ltd v Wollongong Coal Ltd [2018] NSWSC 1459 Jowitt v Callaghan (1938) 38 SR (NSW) 512 Koufos v C Czarnikow Ltd (The Heron II) [1969] 1 AC 350 McFarlane v Reffold (2013) 116 SASR 83; [2013] SASCFC 31 McIntosh v Dalwood (No 3) (1930) 30 SR (NSW) 332 McIntosh v Dalwood (No 4) (1930) 30 SR (NSW) 415 Moschi v Lep Air Services Ltd [1973] AC 331 Newman v McNicol (1938) 38 SR (NSW) 609 Paolucci v Makedyn Pty Ltd (2021) 20 BPR 41,749 Paterson v Pongrass Group Operations Pty Ltd [2011] NSWSC 1588 R v Patel; Ex parte Attorney-General (Qld) [2011] QCA 81 Reckitt v Cody [1920] 2 Ch 452 Ryan v UPG 322 Pty Ltd [2023] NSWSC 1293 Scenic Tours Pty Ltd (2020) 268 CLR 326 Silver v Dome Resources NL (2007) 62 ACSR 539 Sunbay Projects Pty Ltd v PR Wieland Holdings Pty Ltd [2010] QSC 368 Sunbird Plaza Pty Limited v Maloney (1989) 166 CLR 245; [1988] HCA 11 Tal Life Ltd v Shuetrim; MetLife Insurance Ltd v Shuetrim (2016) 91 NSWLR 439 Taylor Square TT Pty Ltd v Kinselas Pty Ltd [2024] NSWSC 799 Taylor Square TT Pty Ltd v Kinselas Pty Ltd (No 2) [2024] NSWSC 987 Waterways Authority of New South Wales v Coal & Allied (Operations) Pty Ltd [2007] NSWCA 276 Wenham v Ella (1972) 127 CLR 454 Texts Cited: Australian Law Dictionary (3rd ed, 2018, Oxford University Press). Geraldine Andrews and Richard Millett, Law of Guarantees (7th ed, Sweet & Maxwell, 2015) H W Fowler, Fowler's Modern English Usage (2nd ed, 1965, Oxford University Press) M P Ellinghaus, "Essentials of the Modern Law of Guarantees" (1989) 2(2) Corporate & Business Law Journal 144 Category: Principal judgment Parties: Spiro Evagelakos (First Plaintiff) Helen Evagelakos (Second Plaintiff) UPG 318 Pty Ltd (First Defendant) Bhart Bhushan (Second Defendant) Representation: Counsel: M Condon SC / NJ Carey (Plaintiffs) G Sirtes SC / S Steinhoff (Defendants)