Clancy v Prince & 2 Ors [2001] NSWSC 85

[2001] ANZ ConvR 354 Reported Decision : (2001) NSW ConvR 55-981 [2001] NSWSC 85 [2001] ACL Rep 335 NSW 24

New South Wales Supreme Court

CITATION : Clancy v Prince & 2 Ors [2001] NSWSC 85 revised - 2/03/2001 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 2184/98 HEARING DATE(S) : 11/08/00, 15/08/00, 16/08/00 JUDGMENT DATE : 26 February 2001

Estelle Muriel Clancy (Plaintiff; Defendant to the First Cross-Claim) PARTIES : Colin Prince (First Defendant; Cross-Claimant - First Cross-Claim; Cross-Claimant - Second Cross-Claim; Defendant to Third Cross-Claim) Lorie Corrigan Real Estate Pty Ltd ACN 068 351 477 (Second Defendant; First Defendant to Second Cross-Claim; Cross-Claimant - Third Cross-Claim) Loriena Mavis Corrigan (Third Defendant; Second Defendant to Second Cross-Claim) JUDGMENT OF : Santow J

C F Hodgson (Plaintiff) COUNSEL : P E King (First Defendant) P T Taylor (Second and Third Defendants) Mark Fraser (Plaintiff) SOLICITORS : Heidtman & Co (First Defendant) Murray Stewart & Fogarty (Second and Third Defendants) CATCHWORDS : CONVEYANCING — Contract of sale of strata titled property — Failure to disclose by vendor or agent to unaware purchaser that laneway contiguous to garage not a public laneway — Appearance of public laneway — Purchaser cancels contract on that account there being no right of way provided free of cost instead — Vendor treats purchaser as having repudiated contract — Misleading advertisements suggesting public laneway or other access — Fraudulent misrepresentation and breach of s42 of Fair Trading Act 1987 by vendor and breach of s52 of Trade Practices Act 1974 (Cth) by estate agent acting on behalf of vendor — agency principles and responsibility of principal — Indemnity and contribution — No contribution required from estate agent — Accessory liability under s75B of Trade Practices Act. Conveyancing Act 1919 s55(2A); s88K Fair Trading Act 1987 (NSW) s42; s72 LEGISLATION CITED : Law Reform (Miscellaneous Provisions) Act 1946 (NSW) s6 Strata Schemes (Freehold Development) Act 1973 (NSW) s20 Trade Practices Act 1974 (Cth) s52; s72; s75; s87 Argy v Blunts and Lane Cove Real Estate (1990) 26 FCR 112 Australian Steel & Mining Corporation Pty Limited v Corben [1974] 2 NSWLR 202 Bialkower v Acohs Pty Ltd and Others (1998) 83 FCR 1 BP Petroleum Development Ltd [v Esso Petroleum Co [1987] SLT 345] Burke v LFOT Pty Ltd [2000] FCA 1155 Civil Service Co-operative Society of Victoria Ltd v Blyth (1914) 17 CLR 601 Clark Equipment Australia Limited v Covcat Pty Ltd (1987) 71 ALR 367 Commercial Banking Company of Sydney Limited v R H Brown & Co (1972) 126 CLR 337 Derry v Peek (1889) 14 App Cas 337 Duke Group Ltd v Pilmer [No 2] ([2000] SASC 418, 8 December 2000, unreported) Edgington v Fitzmaurice (1885) 29 ChD 459 Hamilton v Whitehead (1988) 166 CLR 121 CASES CITED : Hanave v LFOT Pty Ltd (1999) 168 ALR 318 Heydon v NRMA Ltd & Ors (NSWCA 374, 21 December 2000, unreported) Holman v Johnson (1775) 1 Cowp 341 at 343; [1775] 98 ER 1120 Jennings v Zilahi-Kiss (1972) 2 SASR 493 Lezam Pty Ltd v Seabridge Australia Pty Ltd (1992) 35 FCR 535 Lloyd v Grace, Smith & Co [1912] AC 716 Mallan v Lee (1949) 80 CLR 198 Neilsen v Hempston Holdings Pty Limited (1986) 65 ALR 302 NRMA v Morgan (1999) 31 ACSR 435 Oraka Pty Ltd v Leda Holdings Ltd (1997) ATPR 41-558 Oudaille v Lawson [1972] NZLR 259 Pemberton v Southwark LBC [2000] 1 WLR 1672 Street & Hills v Retravision (NSW) Pty Ltd (1995) 56 FCR 588 DECISION : Plaintiff entitled to retain deposit with damages.