Ryde Developments Pty Ltd v The Property Investors Alliance Pty Ltd (No 4) [2017] NSWSC 436

Supreme Court New South Wales

Medium Neutral Citation: Ryde Developments Pty Ltd v The Property Investors Alliance Pty Ltd (No 4) [2017] NSWSC 436 Hearing dates: 20 to 24 March 2017 Decision date: 21 April 2017 Jurisdiction: Equity - Commercial List Before: Ball J Decision: See paragraphs 140 and 141 of this judgment. Catchwords: AUSTRALIAN CONSUMER LAW – misleading or deceptive conduct – whether conduct has a tendency to lead a person into error – whether failure to disclose amounts to misleading or deceptive conduct – whether loss suffered as a result of defendant's conduct CONTRACTS – particular parties – agency contract – breach – whether plaintiff breached contractual term by refusing to exchange contracts with purchaser introduced by defendant CONTRACTS – consideration of factors relevant to real estate contracts – Property Stock and Business Agents Act 2002 (NSW) s 55 – whether defendant acting as an "agent" within the meaning of the Act – whether defendant entitled to commission under the Act EQUITY – general principles – fiduciary duties – agent and principal relationship – duty not to pursue personal interests in conflict with those to whom duty is owed – whether agent owed fiduciary duty to principal ESTOPPEL – whether estoppel can operate against a statutory right or prohibition NEGLIGENCE – agency relationship – whether agent breached duty to exercise due care and skill STATUTORY INTERPRETATION – general rules of construction of instruments – Interpretation Act 1987 (NSW) s 33 – meaning of "agent" Legislation Cited: Australian Consumer Law Interpretation Act 1987 (NSW) s 33 Property, Stock and Business Agents Act 1941 (NSW) Property, Stock and Business Agents Act 2002 (NSW) Property, Stock and Business Agents Regulation 2003 (NSW) Strata Schemes (Freehold Development) Act 1986 (NSW) Cases Cited: Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304; [2009] HCA 25 Chan v Zacharia (1984) 154 CLR 178; [1984] HCA 36 CIC Insurance Ltd v Bankstown Football Club Ltd (1997) 187 CLR 384; [1997] HCA 2 Commonwealth v Verwayen (1990) 170 CLR 394; [1990] HCA 39 Empire Waste Pty Ltd v District Court of New South Wales (2013) 86 NSWLR 142; [2013] NSWCA 394 Ex parte White; Re Neville (1871) 24 LT 45; (1871) 6 Ch App 397 Fawcett v Whitehouse (1829) 1 Russ & M 132; 39 ER 51 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296; [2012] FCAFC 6 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41; [1984] HCA 64 Howard v Commissioner of Taxation (2014) 253 CLR 83; [2014] HCA 21 Investmentsource Corporation Pty Ltd v Knox Street Apartments Pty Ltd (2002) 56 NSWLR 27; [2002] NSWSC 710 Markson v Cutler (2007) 13 BPR 25; [2007] NSWSC 1515 Metropolitan Health Service Board v Australian Nursing Federation (2000) 99 FCR 95; [2000] FCA 784 Miller & Associates Insurance Broking Pty Ltd v BMW Australia Finance Limited (2010) 241 CLR 357; [2010] HCA 31 Mine Subsidence Board v Wambo Coal Pty Ltd (2007) 154 LGERA 60; [2007] NSWCA 137 Overmyer Industrial Brokers Pty Ltd v Campbells Cash & Carry Pty Ltd [2003] NSWCA 305 Tudor Developments Pty Ltd v Makeig (2008) 72 NSWLR 624; [2008] NSWCA 263 United Dominions Corporation Ltd v Brian Pty Ltd (1985) 157 CLR 1; [1985] HCA 49 Category: Principal judgment Parties: Ryde Developments Pty Ltd ACN 151 612 921 (Plaintiff/First Cross Defendant) The Property Investors Alliance Pty Ltd ACN 117 017 302 (First Defendant/First Cross Claimant) Yue (Justin) Wang (Second Defendant) Diaa Malak Gabra (Second Cross Defendant) Representation: Counsel: AJ McInerney SC with D Robertson (Plaintiff) VF Kerr SC with Ms A Carr (Defendants)