Doueihi v Construction Technologies Australia Pty Ltd [2016] NSWCA 105

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Doueihi v Construction Technologies Australia Pty Ltd [2016] NSWCA 105 Hearing dates: 14 September 2015 Decision date: 12 May 2016 Before: Beazley P at [1]; Gleeson JA at [2]; Leeming JA at [229] Decision: (1) Appeal dismissed. (2) Appellants to pay the respondent's costs. Catchwords: ESTOPPEL - equitable estoppel - proprietary estoppel - estoppel by encouragement - when available – where director of respondent company initiated discussions with appellants regarding acquisition of land by appellant-co-owners and lease of portion of acquired land to respondent company - where appellant-co-owners allowed director of respondent company to oversee design and construction of purpose-built building to accommodate respondent's manufacturing plant on the land and knew respondent installed expensive manufacturing plant and equipment which would be costly to dismantle and remove – where director of respondent had close familial connection to three of four co-owners of land – where appellants' family practice was not to document leases - where parties agreed rent, term, option to renew and area to be occupied – respondent's right of occupation not documented – whether respondent assumed that an interest would be granted – challenge to primary judge's factual finding relating to the assumption made by the respondent

ESTOPPEL - equitable estoppel - proprietary estoppel - estoppel by encouragement - when available – nature of assumption required to found a proprietary estoppel – DHJPM v Blackthorn distinguished – whether expectation of 'a particular legal relationship' (and that other party is not free to withdraw from negotiations) is required if parties had no intention to enter into a formal lease – distinction between assumption that an interest would be granted in land and assumption as to a particular legal relationship