State of New South Wales v Schofields Nominee No.5 Pty Ltd [2024] NSWSC 1590

Supreme Court New South Wales

Medium Neutral Citation: State of New South Wales v Schofields Nominee No.5 Pty Ltd [2024] NSWSC 1590 Hearing dates: 14, 16-17 October 2024, 3-4 December 2024 Date of orders: 13 December 2024 Decision date: 13 December 2024 Jurisdiction: Equity - Real Property List Before: Peden J Decision: At [109] Catchwords: CONTRACTS — Remedies — Liquidated damages — Penalty — Whether penalty doctrine engaged by obligation to pay compensation, determined by an expert valuation process, following plaintiff's non-fulfilment of promise to construct and dedicate a public road and defendant's issuance of notice demanding payment — Whether compensation clause protects defendant's legitimate interests — Whether compensation clause is out of all proportion with impact on plaintiff's legitimate interests — Appropriate remedy if clause properly characterised as penal VALUATION — Valuer — Whether valuation in conformity with agreement — Whether experts did not comply with contractual valuation process by failing to consider relevant information and/or failing to "state the basis" of their determination — Appropriate relief if valuers erred CONTRACTS — Misleading conduct under statute — Misleading or deceptive conduct — Representations — Whether plaintiff represented that defendant entitled to compensation as determined by valuation or that it would not challenge compensation clause as penal — Whether alleged representations misleading or deceptive Legislation Cited: Civil Procedure Act 2005 (NSW) Conveyancing Act 1919 (NSW) s 88K Land Acquisition (Just Terms Compensation) Act 1991 (NSW) ss 54, 55 Cases Cited: Acron Pacific Ltd v Offshore Oil NL (1985) 157 CLR 514 AGL Victoria Pty Ltd v SPI Networks (Gas) Pty Ltd [2006] VSCA 173 AMEV-UDC Finance Ltd v Austin (1986) 162 CLR 170 Andrews v Australia and New Zealand Banking Group Ltd (2012) 247 CLR 205 Arab Bank Australia Ltd v Sayde Developments Pty Ltd (2016) 93 NSWLR 231 Australia Capital Financial Management Pty Ltd v Linfield Developments Pty Ltd [2017] NSWCA 99 Australian Vintage Ltd v Belvino Investments No 2 Pty Ltd (2015) 90 NSWLR 367 Bartier Perry Pty Ltd v Paltos [2021] NSWCA 158 Booker Industries Pty Ltd v Wilson Parking (Qld) Pty Ltd (1982) 149 CLR 600 Café Du Liban Pty Ltd v Bespoke Garage Pty Ltd [2017] NSWSC 779 Candoora No 19 Pty Ltd v Freixenet Australasia Pty Ltd [2008] VSC 478 Cavendish Square Holding BV v Makdessi [2016] AC 1172 Chand v Commonwealth Bank of Australia [2015] NSWCA 181 Cherry v Steele-Park (2017) 96 NSWLR 548 Clydebank Engineering and Shipbuilding Company v Don Jose Ramos Yzquierdo Y Castaneda [1905] AC 6 Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640 Holt v Cox (1997) 23 ACSR 590 International Petroleum Investment Company v Independent Public Business Corp of Papua New Guinea [2015] NSWCA 363 J Family Motel Group Pty Ltd v Baset Super Pty Ltd [2024] NSWSC 1251 Kanivah Holdings Pty Ltd v Holdsworth Properties Pty Ltd [2002] NSWCA 180 Legal & General Life of Australia Ltd v A Hudson Pty Ltd (1985) 1 NSWLR 314 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104 O'Dea v Allstates Leasing System (WA) Pty Ltd (1983) 152 CLR 359 Paciocco v Australia and New Zealand Banking Group Ltd (2016) 258 CLR 525 QNI Resources Pty Ltd v North Queensland Pipeline No 1 Pty Ltd (2022) 11 QR 648 Strike Australia Pty Ltd v Data Base Corporate Pty Ltd [2019] NSWCA 205 Sudbrook Trading Ltd v Eggleton [1983] 1 AC 444 United Petroleum Investment Company v Independent Public Business Corporation of Papua New Guinea [2014] NSWSC 1289 Waterside Workers' Federation of Australia v Stewart (1919) 27 CLR 119 Texts Cited: JW Carter, Wayne Courtney and GJ Tolhurst, "Assessment of Contractual Penalties: Dunlop Deflated" (2017) 34 Journal of Contract Law 4 Category: Principal judgment Parties: State of New South Wales (Plaintiff) Schofields Nominee No.5 Pty Ltd (First Defendant) JKN Station Pty Ltd (in liq) (Second Defendant) Representation: Counsel: S Docker SC and P Lin (Plaintiff) G A Sirtes SC and R L Gall (First Defendant)