Manning Motel Pty Limited v DH MB Pty Limited [2013] NSWSC 1582

Supreme Court New South Wales

Medium Neutral Citation: Manning Motel Pty Limited v DH MB Pty Limited [2013] NSWSC 1582 Hearing dates: 8, 9 October 2013 Decision date: 01 November 2013 Jurisdiction: Equity Division Before: Lindsay J Decision: Direct that the plaintiff bring in Short Minutes of Orders giving effect to these Reasons for Judgment, providing for entry of judgment against the first defendant in the sum of $76,160.00 and against the second defendant in the sum of $156,607.20. All questions relating to orders for pre-judgment interest and costs reserved for further consideration. Catchwords: CONTRACT - Collateral Contract - Validity - Tripartite Collateral Contract - Whether consistency between collateral and principal agreements required - Finding of collateral contract requires that a representation made as an inducement to enter the principal contract to be intended as a promise CONTRACT - Collateral Contract - Contract Collateral to a Lease does not necessarily have to be in, or evidenced by, writing notwithstanding a statutory requirement that the Lease be in, or evidenced by, writing. Legislation Cited: Civil Procedure Act 2005 NSW) Conveyancing Act 1919 NSW, s 23C, s 54A Statute of Frauds provisions of ss 36C and 54A of the Conveyancing Act 1919 NSW Evidence Act 1995 NSW Real Property Act 1900 NSW Uniform Civil Procedure Rules 2005 NSW, r 35.2 Cases Cited: Accounting Systems 2000 (Developments) Pty Limited v CCH Australia Limited (1993) 42 FCR 470 at 505 Beaton v Moore Acceptance Corporation Pty Ltd (1959) 33 ALJR 345 Campbell v Backoffice Investments Pty Limited (2009) 238 CLR 304 at 322 [34]-[36] Cutts v Buckley (1933) 49 CLR 189 at 197-198 and 201-202 CJ Grais & Sons Pty Ltd v F Jones & Co Pty Ltd [1962] NSWR 22 at 28 (1961) 62 SR (NSW) 410 at 416 and (1961) 78 WN (NSW) 955 at 959 Dobbs v National Bank of Australasia Limited (1935) 53 CLR 643 at 650-654) Drummond and Rosen Pty Ltd v Easey (No 2) [2013] NSWCA [2009] NSWCA 331 Equuscorp Pty Limited v HGT Investments Pty Limited (2005) 218 CLR 471 at 483 [33]-484 [36] Futuretronics International Pty Ltd v Gadzhis [1992] 2 VR 217 at 240-241 Gates v City Mutual Life Assurance Society Limited (1986) 160 CLR 1 at 5, 6, 11 Gillfillan v Australian Securities and Investments Commission (No 2) [2013] NSWCA 143 at [33]-[40] Hoyt's Proprietary Limited v Spencer (1919) 27 CLR 133 at 139 and 147-148 JJ Savage & Sons Pty Ltd v Blakney (1970) 119 CLR 435 at 442 Lahoud v Lahoud [2006] NSWSC 126 at [91] Leda Pty Ltd v Weerden (No 2) [2007] NSWCA 283 Leipner v McLean (1909) 8 CLR 306 at 314 Maybury v Atlantic Union Oil Company Limited (1953) 89 CLR 507 at 517 Renard Constructions (ME) Pty Limited v Minister for Public Works (1992) 26 NSWLR 234 at 256 and 263-268 Shepperd v Ryde Municipal Council (1952) 85 CLR 1 at 12-14 Symons and Co v Buckleton [1913] AC 30 at 49-51 Tabcorp Holdings Ltd v Bowen Investments Pty Ltd (2009) 236 CLR 272 at 285-286 [13] Toll [FGCT] Pty Limited v Alphapharm Pty Limited (2004) 219 CLR 165 at 177 [35]-183[50] Wright v Madden [1992] 1 Qd R 343 at 347-348 and 349 Zhu v Treasurer of NSW (2004) 218 CLR 530 at 574-575 [128] Texts Cited: JW Carter, Contract Law in Australia (Butterworths, Aust, 6th ed, 2013), para 10.14 (p 219) OW Holmes Jnr, The Common Law (little Brown & C o, Boston, 1881), pp 299-303 OW Holmes Jnr, "The Path of the Law" (1897) 10 Harvard Law Review 457 at 462 Cheshire and Fifoot's Law of Contract (10th ed, 2012) Category: Principal judgment Parties: Plaintiff: Manning Motel Pty Limited ACN 132 265 457 First Defendant: DH MB Pty Limited ACN 128 786 112 Second Defendant: DHBI Pty Limited ACN 128 786 158 Third Defendant: Matthew John Duffy Representation: Counsel: Plaintiff: AP Cheshire Defendants: L Tyndall Solicitors: Plaintiff: Goldrick Farrell Mullan Defendants: MacKellars Lawyers File Number(s): 2011/00410040