Brueckner v The Satellite Group (Ultimo) Pty Ltd & Ors [2002] NSWSC 378

New South Wales Supreme Court

CITATION : Brueckner v The Satellite Group (Ultimo) Pty Ltd & Ors [2002] NSWSC 378 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 3949/00 HEARING DATE(S) : 26/03/02-28/03/02 JUDGMENT DATE : 23 May 2002

Peter Brueckner (Plaintiff) The Satellite Group (Ultimo) Pty Limited (Receiver and Manager appointed) (First Defendant) PARTIES : Westpac Banking Group (Second Defendant) Gregory Joseph Fisher (Third Defendant) Jonathon Broster (Fourth Defendant) Suzanna Mary Broster (Fifth Defendant) JUDGMENT OF : Campbell J

R Evans (Plaintiff) COUNSEL : D R Pritchard (Second Defendant) T D Castle (Fourth & Fifth Defendant) McKell's (Plaintiff) SOLICITORS : Henry Davis York (Second Defendant) Morgan Lewis Alter (Fourth & Fifth Defendant) CATCHWORDS : CONVEYANCING - LAND TITLES UNDER THE TORRENS SYSTEM - trusts, equities and unregistered instruments and interests - effect of information, received prior to acquiring interests, that someone else might have an interest in the land - whether personal equity arises from taking benefit of a transaction and consequently being required to bear burden of that transaction - CONVEYANCING - RELATIONSHIP OF VENDOR AND PURCHASER - breach of contract - failure of vendor to convey - - time for assessment of damages - whether damages recoverable for loss of rent from property - GUARANTEE AND INDEMNITY - discharge of surety - failure of creditor to protect security - appropriate remedy - EQUITY - remedy for breach of equitable duty - relationship of remedy to rationale for equitable duty - GUARANTEE AND INDEMNITY - discharge of surety - failure to disclose unusual features of transaction - need for failure to disclose to amount to misrepresentation justifying rescission - GUARANTEE AND INDEMNITY - discharge of surety - Garcia v National Australia Bank equity - GUARANTEE AND INDEMNITY - discharge of surety - guarantee procured by undue influence of husband Conveyancing Act 1919 Land Registration Act 1925 (UK) LEGISLATION CITED : Land Transfer Act 1952 (NZ) Real Property Act 1877 (Qld) Real Property Act 1900, s 42 Supreme Court Act 1970 Armory v Delamirie (1722) 1 Stra. 505; [93 ER 664] Bahr v Nicolay [No.2] (1988) 164 CLR 604 Bailey v Namol Pty Ltd (1994) 125 ALR 228 Barclays Bank Plc v O'Brien [1994] 1 AC 180 Baxter v Obacelo Pty Ltd (2001) 76 ALJR 114; [2001] HCA 66 Bogdanovic v Koteff (1988) 12 NSWLR 472 Breskvar v Wall (1971) 126 CLR 376 Buckeridge v Mercantile Credits Ltd (1981) 56 ALJR 28; (1981) 147 CLR 654 Canson Enterprises Ltd v Boughtom and Company (1991) 85 DLR (4th) 129 Capel v Butler (1825) 2 Sim. & St. 457 Commonwealth Bank of Australia v Horkings [2000] VSCA 244 Diamond v Campbell-Jones [1961] Ch 22 ER Ives Investments Ltd v High (1967) 2 QB 379 Frater v Finlay (1968) 91 WN (NSW) 730 Frazer v Walker [1967] 1 AC 569 Garcia v National Australia Bank Ltd (1998) 194 CLR 395 Garofano v Reliance Finance Corporation Ltd (1992) NSW Conv R 55-640 Gibbs v Messer [1891] AC 248 Government Insurance Office (NSW) v K A Reed Services Pty Ltd [1988] VR 829 Grgic v Australian and New Zealand Banking Group Ltd (1994) 33 NSWLR 202 Hadley v Baxendale (1854) 9 Ex Ch 341 CASES CITED : Johnson v Perez (1988) 166 CLR 351 Lyus v Prowsa Developments Ltd [1982] 2 All ER 953 Macquarie Bank Ltd v Sixty-Fourth Throne Pty Ltd [1998] 3 VR 133 Midland Montague Australia Ltd v Harkness (1994) 35 NSWLR 150 Munro v Stuart; Friedman v Barrett; ex parte Friedman [1962] Qd R 498 Northern Banking Co Limited v Newman and Calton (1927) IR 520 Northern Banking Co v Newman and Colton (1927) IR 520 O'Halloran v R T Thomas & Family Pty Ltd (1998) 45 NSWLR 262 Ortel v Hordern (1902) 2 SR (NSW) (Eq) 37 Regal (Hastings) Ltd v Gulliver [1967] 2 AC 134 Registrar General v Behn (1981) 148 CLR 562 State Bank of New South Wales v Chia (2000) 50 NSWLR 587 Story v Advance Bank Australia Ltd (1993) 31 NSWLR 722 Strange v Fooks (1863) 4 Giff 408; 66 ER 765 Tang Man Sit v Capacious Investments Ltd [1996] AC 514 Tataurangi Tairuakena v Mua Carr [1927] NZLR 688 Tito v Waddell (No.2) [1977] Ch 106 Vassos v State Bank of South Australia [1992] V Conv R 54-443 Westpac Banking Corporation v Robinson (1993) 30 NSWLR 668 Williams v Frayne (1937) 58 CLR 710 Wulff & Billing v Jay (1872) LR 7 QB 756 Yerkey v Jones (1939) 63 CLR 649 DECISION : No personal equity established against mortgagee of premises. Damages awarded against vendor for failure to convey. Liability against one guarantor reduced by value of security lost through negligence of plaintiff. Another guarantor discharged completely from liability through National Australia Bank v Garcia equity, and also undue influence.