RUTHOL PTY LTD v MILLS & ORS [2003] NSWCA 56

New South Wales Court of Appeal

CITATION : RUTHOL PTY LTD v MILLS & ORS [2003] NSWCA 56 HEARING DATE(S) : 3 February 2003 JUDGMENT DATE : 26 March 2003

JUDGMENT OF : Meagher JA at 1; Sheller JA at 2; Cripps AJA at 103 DECISION : 1 Appeal allowed; 2 Judgments and orders of Palmer J of 19 April 2002 set aside except as to costs; 3 The appellant to pay the costs of first and second respondents of the appeal; 4 The second and third respondents to pay the third respondent's costs of the appeal but to be indemnified in respect of the amount of those costs by the appellant; 5 In both matters No 2101/99 and No 4858/01, order that the parties bring in short minutes of order in accordance with these reasons for judgment.

CATCHWORDS : Equity - Priority - Equitable interests - Maxim that no party may take advantage of its own wrong - Third party - Purchaser of equitable interest for value without notice - Leases and tenancies - Options - Options to renew - Options to purchase - Whether option to renew had been exercised - Contract - Options - Options to purchase property - Exercise of option - Conditions - Misrepresentation - Priority between holder of option and third party acquiring equitable interest bona fide for value and without notice LEGISLATION CITED : Fair Trading Act 1987 Alghussein Establishment v Eton College [1988] 1 WLR 587 Allesch v Maunz (200) 203 CLR 172 Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd (2001) FCA 183 Burns Philp Trustee Co Limited v Viney [1981] 2 NSWLR 216 Butler v Fairclough (1917) 23 CLR 78 Cabal v United Mexican States (2001) 108 FCR 311 Green v Woodroffe (1828) Dowling Select Cases Vol 1 Hooper v Lane (1859) 6 HL Cas 443; 10 ER 1368 Houldsworth v City of Glasgow Bank (1880) 5 App Cas 317 In re London Celluloid Company (1888) 39 CH D 190 Jones v Dunkel (1959) 101 CLR 298 CASES CITED : Lapin v Abigail (1930) 44 CLR 166 Latec Investments Limited v Hotel Terrigal Pty Limited (In liquidation) (1965) 113 CLR 265 Laybutt v Amoco Australia Pty Ltd (1974) 132 CLR 57 Mitchell v Pattern Holdings Pty Ltd (2002) NSWCA 212 Oakes v Turquand & Anor (1867) LR 2 HL 325 P Samuel & Co Ltd v Dumas [1924] AC 431 Phillips v Phillips (1861) 4 De G F & J 208; 45 ER 1164 S and Y Investments (No 2) Pty Ltd (In Liquidation) v Commercial Union Assurance Company of Australia Ltd (1986) 44 NTR 14 Suttor v Gundowda Pty Ltd (1950) 81 CLR 418 TCN Channel 9 Pty Ltd v Hayden Enterprises Pty Ltd (1989) 16 NSWLR 130 The New Zealand Shipping Company Ltd v The Societe des Ateliers et Chantiers de France [1917] 2 KB 717 White v Garden (1951) 10 CB 919 Ruthol Pty Limited - Appellant PARTIES : Brian Mills - First Respondent Elaine Mills - Second Respondent Tricon (Aust) Pty Ltd - Third Respondent FILE NUMBER(S) : CA 40387/02 B W Walker SC/R P L Lancaster - Appellant COUNSEL : N A Cotman SC/G B Colyer - First and Second Respondents M W Young - Third Respondent David Landa Stewart Lawyers - Appellant SOLICITORS : McCabe Terrill Lawyers - First and Second Respondents Grahame Jackson & Associates - Third Respondent