Sahade v BP Australia Pty Limited [2004] NSWSC 512

Reported Decision : (2005) NSW ConvR 56-113

New South Wales Supreme Court

CITATION : Sahade v BP Australia Pty Limited [2004] NSWSC 512 HEARING DATE(S) : 7 June 2004 JUDGMENT DATE : 28 June 2004 JURISDICTION: Equity JUDGMENT OF : Campbell J DECISION : Right of first refusal validly exercised. Grantee of right of first refusal has priority over grantee of option.

CATCHWORDS : CONVEYANCING - right of first refusal to purchase - how right of first refusal to purchase operates when grantor of right of first refusal grants an option to purchase to someone else - WORDS AND PHRASES - "purchase" - EQUITY - equitable estates and interests - conversion of right of first refusal into an equitable interest - EQUITY - priority and notice - relative priorities of grantee of right of first refusal, and grantee of option, when granting of option converts right of first refusal into an equitable interest and grantee of option has notice of the right of first refusal LEGISLATION CITED : Factors Act 1889 (UK) Australian Broadcasting Commission v Australian Performing Right Association Limited (1973) 129 CLR 99 Beneficial Finance Corporation Ltd v Multiplex Constructions Pty Ltd (1995) 36 NSWLR 510 Bob Jane T-Marts Pty Ltd v The Baptist Union of Victoria [1999] VSC 346 District Bank, Limited v Luigi Grill, Limited and Others [1943] 1 Ch 78 Doe d Meyrick v Meyrick [1833] 2 LJ Ex 259; (1833) 1 Cr & M 820 Forder and Others v Cemcorp Pty Ltd [2001] NSWSC 281; (2001) 51 NSWLR 486; (2001) 10 BPR 18,615 Goldmaster Homes P/L & Anor v Johnson & Ors [2004] NSWCA 144 H L Bolton (Engineering) Co Ltd v T J Graham & Sons Ltd [1957] 1 QB 159 Helby v Matthews and Others [1895] AC 471 In Re Pope; Ex parte Dicksee [1908] 2 KB 169 Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 WLR 896 Jessica Holdings Pty Ltd v Anglican Property Trust Diocese of Sydney (1992) 27 NSWLR 140 Jonns and Another v Tan and Others [1999] NSWSC 648; (1999) 9 BPR 17,113 Kuper & Kuper v Keywest Constructions Pty Limited and Another (1990) 3 WAR 419 CASES CITED : Laybutt v Amoco Australia Pty Limited (1974) 132 CLR 57 Mackay and Another v Wilson and Another (1947) 47 SR (NSW) 315 Maggbury Pty Limited and Another v Hafele Australia Pty Limited and Another [2001] HCA 70; (2001) 210 CLR 181 Melacare Industries of Australia Pty Ltd v Daley Investments Pty Ltd (1995) 9 BPR 17,079 Pata Nominees Pty Ltd and Another v Durnsford Pty Ltd and Others [1988] WAR 365 Perri and Another v Coolangatta Investments Proprietary Limited (1982) 149 CLR 537 Pritchard v Briggs and Others [1980] Ch 338 Re Henderson's Caveat [1998] 1 QdR 632 Robinson v Becata Pty Limited [2004] NSWSC 310 Royal Botanic Gardens and Domain Trust v South Sydney City Council [2002] HCA 5; (2002) 76 ALJR 436 Ruthol Pty Ltd v Mills [2003] NSWCA 56; (2003) 11 BPR 20,793 Sterns Trading Pty Limited v Shteinman & Ors (1988) NSW ConvR 55-414 Tiffany Investments Ltd and Another v Bircham & Co Nominees (No 2) Limited and Others [2003] EWCA Civ 1759 Transfield Properties (Kent Street) Pty Ltd v Amos Aked Swift Pty Ltd (1994) 36 NSWLR 321 Walker Corporation Pty Ltd v W R Pateman Pty Ltd (1990) 20 NSWLR 624 Witham v Witham [2000] WASC 236 Anthony Sahade - Plaintiff BP Australia Pty Limited - First Defendant PARTIES : F Cantoni & Son Pty Limited - Second Defendant Parkview Sydney Developments Pty Limited - Third Defendant Davids Group Pty Limited - Fourth Defendant FILE NUMBER(S) : SC 6422/03 M Sahade - Plaintiff COUNSEL : TF Bathurst QC; SA Goodman - First Defendant GM McGrath - Second Defendant RM Smith SC; LV Gyles - Third & Fourth Defendants Comino Prassas - Plaintiff SOLICITORS : Clayton Utz - First Defendant Stojanovic Solicitors - Second Defendant Goldbergs - Third & Fourth Defendants