PALASTY v PARLBY [2007] NSWCA 345

Reported Decision: (2008) NSW Conv R 56-205(2008) ANZ Conv R 8-10

New South Wales Court of Appeal

CITATION: PALASTY v PARLBY [2007] NSWCA 345

HEARING DATE(S): 12 June 2007

JUDGMENT DATE: 6 December 2007

JUDGMENT OF: Mason P at 1; Tobias JA at 64; Handley AJA at 65

DECISION: Appeal dismissed with costs

CATCHWORDS: DAMAGES – Measure and remoteness of damages in actions for breach of contract – remoteness – liabilities incurred – vendor and purchaser – completion of sale under first contract relied upon by plaintiff to enter into a second contract for purchase of another property – first contract breached by defendant – plaintiff unable to complete second contract – losses resulting from breach of second contract - DAMAGES – Measure and remoteness of damages in actions for breach of contract – remoteness – other cases – interest damages – where timely receipt of monies needed and known to both parties – where return of property under first contract at date of termination does not compensate adequately for losses stemming from the breach - In March 2000 the appellant (the purchaser) contracted to purchase from the respondent (the vendor) a home at Hunters Hill. The price was $3,150,000 and a deposit of $315,000 was paid on exchange. In April 2000, in reliance upon the purchaser completing the contract, the vendor entered into a contract to purchase a home in Killara. The vendor paid the customary ten per cent deposit on that contract. - In May 2000, after the nominated completion date for the Hunters Hill contract had passed and after the issuing of notice to complete, the vendor terminated the contract and the purchaser's deposit was forfeited. As a result of the termination, the vendor was also unable to complete the purchase at Killara and suffered the forfeiture of the deposit he had paid on that contract.