Construction Technologies Australia Pty Ltd v Doueihi & 4 Ors [2014] NSWSC 1717

Supreme Court New South Wales

Medium Neutral Citation: Construction Technologies Australia Pty Ltd v Doueihi & 4 Ors [2014] NSWSC 1717 Hearing dates: 3-7 and 11 February 2014; 10 March 2014 Decision date: 04 December 2014 Jurisdiction: Equity Division Before: White J Decision: 1.Stand over the proceedings to a date to be fixed. 2.Direct the plaintiff's counsel to bring in short minutes of order to give effect to these reasons. Catchwords: ESTOPPEL - equitable estoppel - proprietary estoppel - estoppel by encouragement - when available - director of plaintiff company entered into discussions with defendants regarding acquisition of land by defendants and lease of portion of acquired land to plaintiff company - where defendants allowed director of plaintiff company to oversee design and construction of premises on land and were aware plaintiff intended to install expensive adhesives manufacturing equipment for its business which equipment would be costly to dismantle and remove - where director of plaintiff had familial and domestic connection to three of four owners of land - where defendants had practice of not documenting leases relating to their properties - where plaintiff's lease with defendants not documented - effect on reasonableness of reliance - whether essential for plaintiff's assumption to be as to legal relationship or legal rights - relevance of familial and domestic context - whether parties having not reached consensus on important terms of lease precluded estoppel arising - whether defendants estopped from relying on rights at law to determine tenancy at will ESTOPPEL - estoppel by convention - where plaintiff adopted assumption that it would have exclusive occupation of certain area on defendants' premises for five-year term with further five-year option - where individual defendants made no assumption as to the period of plaintiff's exclusive occupation - parties' different assumptions fatal to conventional estoppel claim CONTRACTS - general contractual principles - where one defendant co-owner of property given authority to negotiate terms of occupancy by plaintiff but no authority to enter into agreement on other defendant co-owners' behalf - agreement as to some essential terms reached but parties lacked intention to enter into binding legal relations - no binding contract formed REMEDIES - equitable proprietary estoppel - power to order defendant to execute lease on certain terms - illegality - where defendants claimed grant of lease as sought by plaintiff would result in illegal use of property - relief conditional upon plaintiff obtaining regulatory approval from council Legislation Cited: Conveyancing Act 1919 (NSW) Environmental Planning and Assessment Act 1979 (NSW) Cases Cited: Attorney-General of Hong Kong v Humphreys Estate [1987] AC 114 Austotel Pty Ltd v Franklin Self-Serve Pty Ltd (1989) 16 NSWLR 582 Austotel Pty Ltd v Franklins Self-Serve Pty Ltd (1989) 16 NSWLR 582 Australian Crime Commission v Gray [2003] NSWCA 318 Barnes v Alderton [2008] NSWSC 107; (2008) 13 BPR 25,281 BBB Constructions Pty Ltd v Aldi Foods Pty Ltd [2012] NSWCA 224 Chalmers v Pardoe [1963] 1 WLR 677; [1963] 3 All ER 552 Commonwealth v Verwayen (1990) 170 CLR 394 Crabb v Arun District Council [1976] Ch 179 Crampton v Varna Railway Company (1872) LR 7 Ch App 562 DHJPM Pty Ltd v Blackthorn Resources Limited [2011] NSWCA 348; (2011) 285 ALR 311 Dillwyn v Llewelyn (1862) 4 De GF & J 517; 45 ER 1284 Duke of Devonshire v Eglin (1851) 14 Beav 530; 51 ER 389 East India Company v Vincent (1740) 2 Atk 84; 26 ER 451 EK Nominees Pty Ltd v Woolworths Limited [2006] NSWSC 1172 Flinn v Flinn [1999] VSCA 109; [1999] 3 VR 712 Franklins Pty Ltd v Metcash Trading Limited [2009] NSWCA 407; (2009) 76 NSWLR 603 Giumelli v Giumelli [1999] HCA 10; (1999) 196 CLR 101 Habib Bank Limited v Habib Bank AG Zurich [1981] 1 WLR 1265 at 1285; [1981] 2 All ER 650 Holiday Inns Inc v Broadhead (1974) 232 EG 951 Inwards v Baker [1965] 2 QB 29 Jackson v Cator (1800) 5 Ves Jun 688; 31 ER 806 Milling v Hardie [2014] NSWCA 163 Mobil Oil Australia Limited v Wellcome International Pty Ltd (1998) 81 FCR 475 Moratic Pty Ltd v Gordon [2007] NSWSC 5; (2007) ANZ Conv R 198; NSW Conv R 56-172; Aust Contract R 90-255 Pacific National (ACT) Limited v Queensland Rail [2006] FCA 91 Pilling v Armitage (1805) 12 Ves Jun 78; 33 ER 31 Plimmer v The Mayor of Wellington (1884) 9 App Cas 699 Powell v Thomas (1848) 6 Hare 300; 67 ER 1180 Ramsden v Dyson (1866) LR 1 HL 129 Riches v Hogben [1985] 2 Qd R 292 Rochdale Canal Co v King (No. 2) (1853) 16 Beav 630; 51 ER 924 Rockote Enterprises Pty Ltd v FS Architects Pty Ltd [2008] NSWCA 39 Ryledar Pty Ltd v Euphoric Pty Ltd [2007] NSWCA 65; (2007) 69 NSWLR 603 S & E Promotions Pty Ltd v Tobin Brothers Pty Ltd (1994) 122 ALR 637 Saleh v Romanous [2010] NSWCA 274; (2010) 79 NSWLR 453 Sidhu v Van Dyke [2014] HCA 19; (2014) 251 CLR 505 Silovi Pty Ltd v Barbaro (1988) 13 NSWLR 466 Stiles v Cowper (1748) 3 Atk 692; 26 ER 1198 Tadrous v Tadrous [2010] NSWSC 1388 Tadrous v Tadrous [2012] NSWCA 16 Taluja v Australian International Academy of Education Limited [2011] NSWCA 416; (2011) 16 BPR 30,319 Taylors Fashions Limited v Liverpool Victoria Trustees Co Limited [1982] QB 133 Thorner v Major [2009] UKHL 18; [2009] 1 WLR 776 Van Dyke v Sidhu [2013] NSWCA 198; (2013) 301 ALR 769 Walsh v Walsh [2012] NSWCA 57 Waltons Stores (Interstate) Limited v Maher (1988) 164 CLR 387 Watson v Foxman (1995) 49 NSWLR 315 Willmott v Barber (1880) 15 Ch D 96 Yeoman's Row Management Limited v Cobbe [2008] UKHL 55; [2008] 1 WLR 1752 Texts Cited: A Silink, "Equitable Estoppel in 'Subject to Contract Negotiations' (2011) 5 Journal of Equity 252 B McFarlane, "The Law of Proprietary Estoppel", Oxford University Press, 2014 K R Handley, Estoppel by conduct and election, Thomson Sweet & Maxwell 2006 ed Young, Croft and Smith "On Equity" (Lawbook Co. 2009) Category: Principal judgment Parties: Construction Technologies Australia Pty Ltd (Plaintiff) Edward Doueihi (1st Defendant) Katrina Scott (2nd Defendant) Maria Vatselias (3rd Defendant) Nicole Hogan (4th Defendant) Marble Plus Pty Ltd (5th Defendant) Representation: Counsel: K Rees SC with R A Jedrzejczyk (Plaintiff) D W Elliott (Defendants) Solicitors: Fong D'Emilio Lawyers (Plaintiff) Takchi & Associates Solicitors (Defendants) File Number(s): 2012/367996