Adderton v Festa Holdings Pty Ltd & Ors [2003] NSWSC 1065

Reported Decision : (2004) NSW ConvR 56-085

New South Wales Supreme Court

CITATION : Adderton v Festa Holdings Pty Ltd & Ors [2003] NSWSC 1065 HEARING DATE(S) : 14 November 2003 JUDGMENT DATE : 26 November 2003 JURISDICTION: Equity Division JUDGMENT OF : Gzell J DECISION : On-seller not obliged to provide alternative insurance cover. Declaration that contract for sale terminated and deposit forfeited. Order for repayment of deposit refused.

CATCHWORDS : CONTRACTS - Building, Engineering and Related contracts - Other matters - Residential building works - Failure of contractor to take out insurance under the Home Building Act 1989 - Failure of original owner to attach insurance certificate to contract for sale of dwelling - Whether on-seller obliged to obtain alternative insurance cover - CONVEYANCING - Relationship of Vendor and Purchaser - Matters arising between Contract and Conveyance - Whether on-seller entitled to give notice to complete and terminate contract for sale - Whether failure to obtain alternative insurance cover a defect in title - Whether an order for repayment of deposit under the Conveyancing Act 1919, s 55(2A) should be made Building Services Corporation Act 1989 Home Building Act 1989 LEGISLATION CITED : Building Services Corporation Legislation Amendment Act 1996 Home Building Regulation 1997 Home Building Amendment Bill 2000 Conveyancing Act 1919 HIH Casualty and Insurance Ltd v Jones [2000] NSWSC 359 Adolfson v Jengedor Pty Ltd (1995) 6 BPR 14,147 Sullivan v Dan (1996) 7 BPR 14,974 Lucas & Tait (Investments) Pty Ltd v Victoria Securities Ltd [1973] 2 NSWLR 268 Wilson v Kingsgate Mining Industries Pty Ltd [1973] 2 NSWLR 713 CASES CITED : Gogard Pty Ltd v Satnaq Pty Ltd (1999) 9 BPR 17,171 Golding v Vella (2001) 10 BPR 18,919 Terry v Permanent Trustee Australia Ltd (1995) 6 BPR 14,091 Mearns v Parras Holdings Pty Ltd (1994) NSW ConvR 55-705 Pratt v Hawkins (1991) 32 NSWLR 319 McDonald v Dennys Lascelles Ltd (1933) 48 CLR 457 Peter Alan Adderton - Plaintiff Festa Holdings Pty Ltd - 1st Defendant PARTIES : Lawrence Moraschi - 2nd Defendant Doyle Spillane Pty Ltd - 3rd Defendant Stephen Richard Doyle - 4th Defendant Peter Raymond Spillane - 5th Defendant FILE NUMBER(S) : SC 1253/03 COUNSEL : A Iuliano - Plaintiff M Henry - 1st and 2nd Defendants Colin Biggers & Paisley - Plaintiff SOLICITORS : John Byrnes & Associates - 1st and 2nd Defendants Wood Marshall Williams - 3rd, 4th and 5th Defendants