Rushcutters Bay Developments Pty Ltd v Dragon Asset Investment Pty Ltd (No 2) [2017] NSWSC 866

Supreme Court New South Wales

Medium Neutral Citation: Rushcutters Bay Developments Pty Ltd v Dragon Asset Investment Pty Ltd (No 2) [2017] NSWSC 866 Hearing dates: 13 June 2017 Date of orders: 30 June 2017 Decision date: 30 June 2017 Jurisdiction: Equity Before: Darke J Decision: Judgment for the plaintiff against the defendants in the sum of $937,500 plus interest pursuant to s 100 of the Civil Procedure Act 2005 (NSW) calculated to run from 7 July 2016 up to the date of judgment. Catchwords: LAND LAW – contract for sale – deposit – forfeiture of deposit – where parties varied contract to extend time for completion in exchange for increases in deposit above 10% of price – where deposit payable in instalments – where vendor terminated for failure to pay instalments – whether variations to standard form contract permit recovery of deposit of more than 10% of price

LAND LAW – contract for sale – deposit – vendor entitled to keep or recover deposit up to 10% of price – statutory return of deposit – where vendor terminated contract for sale for failure to pay deposit instalments – where vendor resold at a higher price – whether discretion should be exercised under s 55(2A) Conveyancing Act to defeat vendor's claim for deposit

CONTRACTS – construction and interpretation – where standard terms of contract for sale permitted vendor to keep or recover deposit up to 10% of price – where parties varied standard terms to permit retention of deposit of more than 10% of price – whether variations also permit recovery of deposit beyond 10% – extent of inconsistency limited to retention Legislation Cited: Conveyancing Act 1919 (NSW), s 55(2A) Cases Cited: Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99 Baird v Chambers (2010) 15 BPR 28,337; [2010] NSWSC 272 Commissioner of Taxation v Reliance Carpet Co Pty Ltd (2008) 236 CLR 342; [2008] HCA 22 Dovuro v Wilkins (2000) 105 FCR 476; [2000] FCA 1902 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Harkins v Butcher (2002) 55 NSWLR 558; [2002] NSWCA 237 Havyn Pty Ltd v Webster (2005) 12 BPR 22,837; [2005] NSWCA 182 Howe v Smith (1884) 27 Ch D 89 Lucas & Tait (Investments) Pty Ltd v Victoria Securities Ltd [1973] 2 NSWLR 268 Luu v Sovereign Developments Pty Ltd (2006) 12 BPR 23,629; [2006] NSWCA 40 McDonald v Dennys Lascelles Ltd (1933) 48 CLR 457 McGrath v Sturesteps (2011) 81 NSWLR 690; [2011] NSWCA 315 Nassif v Caminer (2009) 74 NSWLR 276; [2009] NSWCA 45 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451; [2004] HCA 35 Re Strand Music Hall Co Ltd; Ex parte European and American Finance Co Ltd (1865) 35 Beav 153; 55 ER 853 Romanos v Pentagold Investments Pty Ltd (2003) 217 CLR 367; [2003] HCA 58 Rushcutters Bay Developments Pty Ltd v Dragon Asset Investment Pty Ltd [2016] NSWSC 1324Socratous v Koo (1993) NSW ConvR 55-685 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 Velik v Steingold (2012) 16 BPR 31,337; [2012] NSWSC 860 Workers Trust & Merchant Bank Ltd v Dojap Investments Ltd [1993] AC 573 Category: Principal judgment Parties: Rushcutters Bay Developments Pty Ltd (Plaintiff) Dragon Asset Investment Pty Ltd (First Defendant) Kai Lung Sze (Second Defendant) Representation: Counsel: Mr M J Dawson (Plaintiff) Mr H Altan with Mr P Tiliakos (Defendants)