Lee & Ors v Ross & Ors (No 2) [2003] NSWSC 507

Reported Decision : (2004) NSW ConvR 56-067

New South Wales Supreme Court

CITATION : Lee & Ors v Ross & Ors (No 2) [2003] NSWSC 507 HEARING DATE(S) : 10 June, 2003 JUDGMENT DATE : 11 June 2003 JURISDICTION: Equity Division JUDGMENT OF : Palmer J DECISION : Plaintiffs ordered to pay compensation for wrongful lodgement of caveat.

CATCHWORDS : REAL PROPERTY - CAVEAT - COMPENSATION - COMPENSABLE LOSS - Purchasers' solicitor insisted on untenable construction of contract, probably due to not having retained a complete copy of contract in file - Vendors rescinded - Purchasers sought specific performance and lodged caveat - whether caveat lodged "without reasonable cause" - whether solicitor and Purchasers could have reasonable ground to believe that contract not validly rescinded - whether inability of Vendors to discharge loan out of proceeds of resale of land during currency of caveat was a loss "attributable" to wrongful lodging of caveat. HELD: Purchasers had lodged caveat without reasonable cause - payments of interest which would have been avoided but for existence of caveat were a loss attributable to the wrongful lodgement of caveat. Real Property Act 1900 (NSW) - s.74P(1) LEGISLATION CITED : Real Property (Caveats) Amendment Act 1986 (NSW) Real Property Amendment Act 1996 (NSW) Supreme Court Act 1970 (NSW) - s.94 - Beca Developments Pty Ltd v Idameneo (No 92) Pty Ltd (1990) 21 NSWLR 459 - Bedford Properties Pty Ltd v Surgo Pty Ltd [1981] 1 NSWLR 106 CASES CITED : - Collingridge v Sontor Pty Ltd (1997) 141 FLR 440 - Horswell v Paul (1983) NSW ConvR 55-126 - Lee v Ross [2003] NSWSC 289 - Nelson v Kimberley Homes Pty Ltd (1988) NSW ConvR 55-394 Andrew Kwang Lee - First-named Plaintiff Catherine Bok Lee - Second-named Plaintiff Ju Hyung Lee - Third-named Plaintiff Na Young Lee - Fourth-named Plaintiff PARTIES : Raymond Ross - First Defendant Bernadine Ross - Second Defendant Karen Ross - Third Defendant Cheryl Ann Thomas - Fourth Defendant Registrar General of New South Wales - Fifth Defendant FILE NUMBER(S) : SC 2787/97 COUNSEL : A. Blank - Plaintiffs R. Sofroniou - First Defendant SOLICITORS : Daniel Svir - Plaintiffs Horowitz & Bilinsky - First Defendant