Leedman v Chahhoud [2024] NSWSC 1284

Supreme Court New South Wales

Medium Neutral Citation: Leedman v Chahhoud [2024] NSWSC 1284 Hearing dates: 23-26, 29, 31 July, 7 August 2024 Date of orders: 16 October 2024 Decision date: 16 October 2024 Jurisdiction: Equity - Real Property List Before: Williams J Decision: See orders at [344]. Catchwords: EQUITY – Equitable charges – Enforceability – Order for judicial sale. CONTRACTS – Formation – Intention to be bound. DURESS – Whether the first defendant signed deed under duress exerted by second defendant – Where the evidence does not establish duress – Where the plaintiffs (being the parties seeking to enforce the deed) did not have actual or constructive knowledge of the alleged duress, – Where plaintiffs did not use the second defendant as their agent to procure the first defendant's execution of the deed. EQUITY – Undue influence – Whether the first defendant signed the deed as a result of undue influence of the second defendant – Where the evidence does not establish undue influence – Equity – Yerkey v Jones – Where the first defendant was not a volunteer. EQUITY – Unconscionable conduct – Whether the first defendant suffered from a special disadvantage, ­ Whether the plaintiffs had actual or constructive knowledge of any special disadvantage. CONTRACTS – Unjust contracts – Whether the terms of the deed are unjust under the Contracts Review Act 1980 (NSW) – Where the proper law of the deed is the law of Queensland. Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth) ss 12BAB, 12CA, 12CB, 12CC Civil Procedure Act 2005 (NSW) s 101 Contracts Review Act 1980 (NSW) ss 6(2), 17(3) Property Law Act 1974 (Qld) s 45 Cases Cited: Abdallah v Baygan [2019] NSWSC 1507 Abdallah v Baygan (No. 4) [2020] NSWSC 1075 Akai Pty Ltd v People's Insurance Co Ltd (1996) 188 CLR 418; [1996] HCA 39 Australia and New Zealand Banking Group Ltd v Karam (2005) 64 NSWLR 149; [2005] NSWCA 344 Boutros v Nationwide Capital Pty Ltd [2013] NSWCA 246 Braam v BBC Hardware Ltd [2020] VSCA 164 Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447 Dunwoodie v Teachers Mutual Bank Ltd [2014] NSWCA 24 Elkofairi v Permanent Trustee Co Ltd (2002) 11 BPR 20,841; [2002] NSWCA 413 Ermogenous v Greek Orthodox Community of SA Inc (2002) 209 CLR 95; [2002] HCA 8 ET-China.com International Holdings Ltd v Cheung (2021) 388 ALR 128; [2021] NSWCA 24 Fox v Percy (2003) 214 CLR 118; [2003] HCA 22 Garcia v National Australia Bank Ltd (1998) 194 CLR 395; [1998] HCA 48 Ghannam v BB&B Penrith Pty Ltd [2022] NSWSC 1588 Helou v Chahhoud [2021] NSWSC 878 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 King Investment Solutions Pty Ltd v Hussain (2005) 64 NSWLR 441; [2005] NSWSC 1076 MSPR Pty Ltd v Advanced Braking Technology Ltd [2013] NSWCA 416 Morris Finance Ltd v Free (2017) 18 BPR 37,223; [2017] NSWSC 1417 Moubarak by his tutor Coorey v Holt (2019) 100 NSWLR 218; [2019] NSWCA 102 Narain v Euroasia (Pacific) Pty Ltd (2009) 26 VR 387; [2009] VSCA 290 Nitopi v Nitopi (2022) 109 NSWLR 390; [2022] NSWCA 162 Productivity Partners Pty Ltd (trading as Captain Cook College) v Australian Competition and Consumer Commission [2024] HCA 27 Retirement Village Bargo Pty Ltd v Anwar (2023) 21 BPR 44,177; [2023] NSWSC 209 Roberts v Investwell Pty Ltd (in liq) (2012) 88 ACSR 689; [2012] NSWCA 134 Rogers v Rogers [2020] NSWSC 392 Stellar Vision Operations Pty Ltd v Hills Health Solutions Pty Ltd [2023] NSWCA 102 Sood v Christianos (2008) 14 BPR 26,101; [2008] NSWSC 1087 Stubbings v Jams 2 Pty Ltd (2022) 276 CLR 1; [2022] HCA 6 Thorne v Kennedy (2017) 263 CLR 85; [2017] HCA 49 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 Wakim v Senworth Capital Pty Ltd [2024] NSWCA 102 Watson v Foxman (1995) 49 NSWLR 315 Yerkey v Jones (1939) 63 CLR 649; [1939] HCA 3 Texts Cited: J D Heydon, M J Leeming, P G Turner, Meagher Gummow & Lehane's Equity Doctrines & Remedies (5th ed, 2015, LexisNexis) N Seddon, Seddon on Deeds (2nd ed, 2022, The Federation Press) Category: Principal judgment Parties: Kim Leedman (First Plaintiff) Anita Leedman (Second Plaintiff) Trilam Developments Pty Ltd (ACN 130 367 412) (Third Plaintiff) Chadia Chahhoud (First Defendant) Elias Taleb (Second Defendant) Fawaz Helou (Third Defendant) Ozem Kassem in his capacity as liquidator of Class 1 Form Pty Ltd (In liquidation) (Fourth Defendant) Representation: Counsel: Mr Daniel Krochmalik with Ms Ada Lim (Plaintiffs) Ms Chadia Chahhoud (Litigant in person) (First Defendant)