Urban House v Purnell Bros [2007] NSWSC 1248

Reported Decision : (2008) NSW Conv R 56-199

New South Wales Supreme Court

CITATION : Urban House v Purnell Bros [2007] NSWSC 1248 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 02/10/07

JUDGMENT DATE : 9 November 2007

JUDGMENT OF : Gzell J

DECISION : Declaration that purchasers validly terminated the contract under the Conveyancing Act 1919, s 66L. Order for return of the deposit. Cross claim dismissed. Vendor to pay interest and costs.

CATCHWORDS : CONYENACING - Relationship of Vendor and Purchaser - Matters Arising between Contract and Conveyance - Office building on site damaged by fire - Purchasers' original intention to demolish building and construct high-rise residential and commercial development - Whether the land was substantially damaged in terms of the Conveyancing Act 1919, s 66L - Whether the land was materially different from that which the purchasers contracted to buy in terms of the Conveyancing Act 1919, s 66J - Prinicples involved - Analogy with Flight v Booth (1834) 1 Bing (NC) 370 (131 ER 1160) and compensation for error or misdescription - Whether the purchasers, when property market fell, decided to defer the development and lease out the land and buildings

LEGISLATION CITED : Conveyancing Act 1919 Conveyancing (Passing of Risk) Amendment Act 1986

Flight v Booth (1834) 1 Bing (NC) 370 at 377 (131 ER 1160) Shadlow & Anor v Skiadopolous & Anor (1988) NSW ConvR 55-383 Stephenson v State Bank of NSW (1996) 39 NSWLR 101 CASES CITED : Hamilton v Monroe (1951) 51 SR (NSW) 250 Bakhos v Fenner & Anor [2007] NSWSC 641 Jones v Dunkel (1959) 101 CLR 298 Cubillo v Commonwealth (2000) 103 FCR 1 The Standard Contract for the Sale of Land in New South Wales, 2nd ed, LBC Information Services, Sydney, 1998