Signorelli v M G South Pty Ltd [2012] NSWSC 1606

Supreme Court New South Wales

Medium Neutral Citation: Signorelli v M G South Pty Ltd [2012] NSWSC 1606 Hearing dates: 10 - 12 December 2012 Decision date: 13 December 2012 Jurisdiction: Common Law Before: Rein J Decision: Judgment in favour of the defendants on the plaintiff's claim against them. Catchwords: CONVEYANCING - exchange of contracts - deposit - where real estate agent accepted a copy of a deposit bond pending provision of the original the next business day - agent did not breach his duty to the vendor

CONVEYANCING - breach of contract for sale and remedies - vendor's remedies - rescission or termination - entitlement to - where contract term required provision of a deposit bond - where purchaser provided a copy of a deposit bond which could not be called on for cash - where vendor agreed to extend time for provision of original deposit bond to next business day - vendor entitled to terminate immediately on failure to supply original deposit bond by close of the next business day

TORTS - negligence - damage - causation - where copy of a deposit bond accepted by real estate agent on exchange of contracts - where vendor was always entitled to terminate contract for purchaser's failure to produce deposit bond - agent's acceptance of the copy of deposit bond, failure to verify or obtain advice on its validity and failure to verify the purchaser's details in the contract not causative of loss - vendor's solicitor's failure to verify the validity of the deposit bond similarly not causative of loss

TORTS - negligence - damage - causation - where copy of a deposit bond accepted by real estate agent on exchange of contracts - where purchaser would not have produced the original deposit bond and would not have provided the balance of a 10% "deposit" - where authority exists to suggest that vendor may not have been entitled to balance of 10% of the purchase price - vendor's solicitor's failure to require payment of deposit by alternate means as required under contract not causative of loss Legislation Cited: Civil Liability Act 2002 Legal Profession Act 2004 Property Stock and Agents Act 2002 Cases Cited: Brien v Dwyer (1978) 141 CLR 378 Goodrich Aerospace Pty Limited v Arsic [2006] NSWCA 187 Iannello v Sharpe [2007] NSWCA 61; 69 NSWLR 452 Josland v Mullaley Properties Pty Ltd (1993) 6 BPR 13,285 Luu v Sovereign Developments Pty Ltd [2006] NSWCA 40 Romanos v Pentagold Investments Pty Ltd [2003] HCA 58; (2003) 217 CLR 367 Shepherd v Felt & Textiles of Australia Ltd (1931) 45 CLR 359 Stone v Matich (1981) 2 BPR 9301 Wood Hall Ltd v Pipeline Authority [1979] HCA 21; (1979) 141 CLR 443 Category: Principal judgment Parties: Paul John Signorelli (Plaintiff) M G South Pty Ltd (First defendant) P E Baltins & A L Matiussi & L Polito & R Tosolini t/as Willis & Bowring Solicitors (Second defendant) Representation: Counsel: J L Sharpe (Plaintiff) D McLure (First defendant) J Emmett (Second defendant) Solicitors: Costa & Associates (Plaintiff) Lander & Rogers (First defendant) Middletons (Second defendant) File Number(s): SC 2010/373492