Tamanna v Zattere; Thakorlal v Zattere; Rabac Pty Ltd v Zattere [2017] NSWSC 1388

Supreme Court New South Wales

Medium Neutral Citation: Tamanna v Zattere; Thakorlal v Zattere; Rabac Pty Ltd v Zattere [2017] NSWSC 1388 Hearing dates: 20 – 23 June 2016, 10 April, 22 and 24 August 2017 Date of orders: 12 October 2017 Decision date: 12 October 2017 Jurisdiction: Equity Before: Darke J Decision: Purchasers entitled to loss of bargain damages following termination for vendor's repudiation of contracts. Catchwords: LAND LAW – conveyancing – the contract for sale – rescission – "off the plan" purchases – vendors required to use either reasonable endeavours or best endeavours to cause plan of subdivision to be registered – plan not registered by required date – whether vendor entitled to rescind – rescissions ineffective

CONTRACTS – causation – principle that a party cannot exercise a right in reliance on an event that results from its own default – whether innocent party must prove that default materially contributed to the occurrence of the event or prove on balance of probabilities that default caused the event – party not able to exercise a right of rescission if it has materially contributed to the occurrence of the event that gives rise to the right

CONTRACTS – damages – date of assessment – where defendants repudiated contracts by invalid rescission – subject matter of contract subsequently sold by receiver – plaintiffs terminated contracts shortly before hearing – whether date of assessment is date of termination or earlier date – damages assessed at date of termination

CONTRACTS – damages – loss of bargain damages – requirement of plaintiff to prove it was ready, willing and able to perform its obligations – standards of readiness, willingness and ability for termination for breach and proof of damages – plaintiffs ready, willing and able to complete up to time of termination Legislation Cited: Competition and Consumer Act 2010 (Cth), Sch 2, ss 18, 236 Conveyancing Act 1919 (NSW), ss 88B, 88K Supreme Court Act 1970 (NSW), s 68 Cases Cited: Abourjaily v Parkview Estate Pty Ltd [2017] NSWSC 1256 Actall Pty Ltd v Pacific Bay Development Pty Ltd [2006] ANZ ConvR 67; [2005] NSWSC 1067 Al Achrafi v Topic (2016) 18 BPR 36,517; [2016] NSWSC 1807 ASA Constructions Pty Ltd v Iwanov [1975] 1 NSWLR 512 Clark v Macourt (2013) 253 CLR 1; [2013] HCA 56 Cohen & Co v Ockerby & Co Ltd (1917) 24 CLR 288 DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Foran v Wight (1989) 168 CLR 385 Hardy v Wardy (2001) 10 BPR 19,055; [2001] NSWSC 1141 Hawes v Cuzeno Pty Ltd (1999) 10 BPR 18,011; [1999] NSWSC 1167 Hensley v Reschke (1914) 18 CLR 452 Henville v Walker (2001) 206 CLR 459; [2001] HCA 52 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Hunyor v Tilelli (1997) 8 BPR 15,629 Italo-Australian Club Ltd v National Australia Bank Ltd (1989) NSW ConvR 55-461 Johnson v Perez (1988) 166 CLR 351 Joseph Street Pty Ltd v Tan (2012) 38 VR 241; [2012] VSCA 113 Masters v Belpate (2001) 10 BPR 18,527; [2001] NSWSC 169 Mills v Ruthol Pty Ltd (2004) 61 NSWLR 1; [2004] NSWSC 547 Mordue v Kroone (2009) 14 BPR 26,771; [2009] NSWSC 255 Ng v Filmlock Pty Ltd (2014) 88 NSWLR 146; [2014] NSWCA 389 Nina's Bar Bistro Pty Ltd v MBE Corporation (Sydney) Pty Ltd [1984] 3 NSWLR 613 Peter Turnbull & Co Pty Ltd v Mundus Trading Co (Australasia) Pty Ltd (1954) 90 CLR 235 Plumor Pty Ltd v Handley (1996) 41 NSWLR 30 Rawson v Hobbs (1961) 107 CLR 466 Ronnoc Finance Ltd v Spectrum Network Systems Ltd (1997) 45 NSWLR 624 Sanctuary Investments Pty Ltd v St Gregory's Armenian School Incorporated (1998) 9 BPR 16,823 Sunbird Plaza Pty Ltd v Maloney (1988) 166 CLR 245 Suttor v Gundowda Pty Ltd (1950) 81 CLR 418 Transfield Pty Ltd v Arlo International Ltd (1980) 144 CLR 83 Wang v Kaymet Corporation [2015] NSWSC 1459 Wardy v Hardy (2002) 11 BPR 20,227; [2002] NSWCA 215 Waters Lane Pty Ltd v Sweeney (2008) Aust Contract R 90-287; [2007] NSWCA 200 Wroth v Tyler [1974] Ch 30 Category: Principal judgment Parties: 2015/77619 Sadia Tamanna (First Plaintiff) Mohammed Shafiqul Islam & Nahid Sinha (Second & Third Plaintiffs) Elizabeth Beatty & Sean Beatty (Fourth & Fifth Plaintiffs) Nataile Rita Twyford & Ryan Twyford (Sixth & Seventh Plaintiffs) Akm Shawkat-Ul Islam & Nishat Islam (Eighth & Ninth Plaintiffs) Ratish Jassra & Aranya Jassra (Tenth & Eleventh Plaintiffs) Russell Tanvir Chowdhury (Twelfth Plaintiff) Shamin Reza Farooq & Sonia Ferdous (Thirteenth & Fourteenth Plaintiffs) Ahmed Samim Naeblkhil (Fifteenth Plaintiff) James Thorne & Assunta Thorne (Sixteenth & Seventeenth Plaintiffs) Mihir Kumar Roy & Rummana Afreen (Eighteenth & Nineteenth Plaintiffs) Md Monirul Islam & Samiya Rahim Chowdhury (Twentieth & Twenty First Plaintiffs) Satya Prakash Upadhyaya & Maya Upadhyaya (Twenty Second & Twenty Third Plaintiffs) Puneet Sharma & Shweta Sharma (Twenty Fourth & Twenty Fifth Plaintiffs) Mary Paula Zattere (First Defendant) Judy Anne Feeney (Second Defendant) EDI Kellyville Pty Ltd (Third Defendant)