Kylsilver Pty Ltd v One Australia Pty Ltd [2001] NSWSC 611

New South Wales Supreme Court

CITATION : Kylsilver Pty Ltd v One Australia Pty Ltd [2001] NSWSC 611 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 2274/00 HEARING DATE(S) : 5 April and 8 May 2001 JUDGMENT DATE : 20 July 2001

Kylsilver Pty Ltd (P & XD) PARTIES : One Australia Pty Limited (1D & XC) James Kenneth Sayer (2D) Emily Sayer (3D) JUDGMENT OF : Hamilton J

COUNSEL : P B Walsh (P & XD) R J Weber (1-3D & XC) SOLICITORS : Sunman & Walker (P & XD) Champion Legal (1-3D & XC) CATCHWORDS : CONVEYANCING [76] - Relationship of vendor and purchaser - Breach of contract - Deposit - Recovery of deposit - Statutory power to order - Whether power extends to a deposit paid by a person other than the purchaser - GUARANTEE AND INDEMNITY [37] - Indemnities - Construction of contract - Indemnity against losses, damages etc which may become due and payable by purchaser to vendor under contracts for sale of land - Whether indemnifiers liable on termination of contracts for unpaid balance of deposits. LEGISLATION CITED : Conveyancing Act 1919 s 55(2A) Albert SC v Vanderloos (1992) 77 LGRA 309 Alfred McAlpine Construction Ltd v Unex Corporation Ltd (1994) 70 BLR 26 Cameo Motors Limited v Portland Holdings Limited [1965] NZLR 109 Citicorp Australia Ltd v Hendry (1985) 4 NSWLR 1 Darlington Futures Ltd v Delco Australia Pty Ltd (1986) 161 CLR 500 De Santo v Munduna Investments Limited (In Liquidation) (1981) 12 ATR 517 Kylsilver Pty Ltd v One Australia Pty Ltd [2001] NSWSC 226 Lakeman v Mountstephen (1874) LR 7 HL 17 CASES CITED : McDonald v Dennys Lascelles Ltd (1933) 48 CLR 457 Moschi v Lep Air Services Ltd [1973] AC 331 Pendal Nominees Pty Ltd v Lednez Industries (Australia) Ltd (1996) 40 NSWLR 282 Sunbird Plaza Pty Ltd v Maloney (1988) 166 CLR 245 Total Oil Products (Australia) Pty Ltd v Robinson [1970] 1 NSWR 701 Wren v Mahony (1972) 126 CLR 212 Yeoman Credit Ltd v Latter [1961] 1WLR 828 14 Halsbury's Laws of Australia [220-20] 20 Halsbury's Laws of England (4th ed Reissue, 1993) paras 109, 345, 354 O'Donovan and Phillips, The Modern Contract of Guarantee (3rd ed, 1996) 25 - 27 DECISION : Judgment for defendants on claim for indemnity.