Farah Construction Pty Ltd v Say-Dee Pty Ltd [2004] NSWSC 800

New South Wales Supreme Court

CITATION : Farah Construction Pty Ltd v Say-Dee Pty Ltd [2004] NSWSC 800 HEARING DATE(S) : 16 to 18 August, 2004 JUDGMENT DATE : 19 August 2004 JURISDICTION: Equity Division JUDGMENT OF : Palmer J DECISION : Claim for constructive trust dismissed.

CATCHWORDS : JOINT VENTURE - FIDUCIARY OBLIGATION - CONSTRUCTIVE TRUST - Joint venture for development of particular property - one party to venture buys adjoining properties - whether that party had fiduciary obligation to offer participation in adjoining properties to other joint venturer - whether participation in fact offered - whether adjoining properties held on constructive trust. LEGISLATION CITED : Conveyancing Act 1919 (NSW) - Div 6 of Part IV CASES CITED : Noranda Australia Ltd v Lachlan Resources NL (1988) 14 NSWLR 1 Farah Construction - Plaintiff/First Cross Defendant Farah Elias - Second Cross Defendant Lesmint Pty Ltd - Third Cross Defendant PARTIES : Margaret Elias - Fourth Cross Defendant Sarah Elias - Fifth Cross Defendant Jade Elias - Sixth Cross Defendant Say-Dee Pty Ltd - Defendant/Cross Claimant FILE NUMBER(S) : SC 1956/03 COUNSEL : V.R.W. Gray - Plaintiff/Cross Defendants R.J. Weber SC, D.K.L. Raphael - Defendant/Cross Claimant SOLICITORS : Strathfield Law - Plaintiff/Cross Defendants Esplins - Defendant/Cross Claimant

Introduction

1 The Plaintiff ("Farah") and the Defendant ("Say-Dee") are the registered proprietors as tenants in common in equal shares of the property comprising Folio Identifier 1/1012934, being the property known as 11 Deane Street, Burwood ("No 11"). 2 By Summons filed on 19 March 2003 Farah seeks the appointment of a trustee for sale of No 11 upon the statutory trusts for sale under Division 6 of Part IV of the Conveyancing Act 1919 (NSW). Say-Dee concedes that if it fails in its Cross Claim the orders sought by Farah in the Summons must be made. 3 By its Cross Claim Say-Dee seeks: