E Co v Q [2018] NSWSC 442

Supreme Court New South Wales

Medium Neutral Citation: E Co v Q [2018] NSWSC 442 Hearing dates: 14 August - 6 September 2017; 3, 10 and 11 October 2017 Date of orders: 13 April 2018 Decision date: 13 April 2018 Jurisdiction: Equity Before: Ward CJ in Eq Decision: (1) To the extent necessary, give leave pursuant to r 35.2(3) for both parties to use the affidavits referred to at [296]-[297] of these reasons notwithstanding that the deponent was not made available for cross-examination. (2) Direct the parties to prepare short minutes of order to reflect these reasons and to forward those and any brief written submissions in relation to those orders to my associate by 4pm 24 April 2018. (3) Reserve the question of costs. Catchwords: ESTOPPEL – Proprietary estoppel – Encouragement – Acquiescence or standing by – Expectation that first defendant would make his properties available until his death for use in the family business and leave the properties to the plaintiffs on his death – Whether reliance established – Whether detriment established – Relief – Where acceleration of the expectation is appropriate in order to do equity and effect a clean break Legislation Cited: Agricultural Tenancies Act 1990 (NSW), ss 6, 7, 8, 9, 14 Children (Criminal Proceedings) Act 1987 (NSW), s 15A(1)(a) Civil Procedure Act 2005 (NSW), s 21 Contracts Review Act 1980 (NSW) Conveyancing Act 1919 (NSW), ss 54A, 127(1) Corporations Act 2001 (Cth), ss 232, 233 Court Suppression and Non-publication Orders Act 2010 (NSW), ss 7, 8(1)(a)-(d)(e) Crimes Act 1900 (NSW), ss 61M, 66A, 578A(2) Evidence Act 1995 (NSW), ss 55(2)(a), 78, 102, 103, 128 Income Tax Assessment Act 1997 (Cth), ss 104-55 Powers of Attorney Act 2003 (NSW), Pt 2 Uniform Civil Procedure Rules 2005 (NSW), r 35.2(3) Cases Cited: "X" v Sydney Children's Hospitals Specialty Network [2011] NSWSC 1272 ACCC v Yazaki Corporation (No 2) [2015] FCA 1304; 332 ALR 396 Allied Pastoral Holdings Pty Ltd v Commissioner of Taxation (Cth) [1983] 1 NSWLR 1 Ascot Investments Pty Limited v Harper (1981) 148 CLR 337; [1981] HCA 1 Ashton v Pratt (2015) 88 NSWLR 281; [2015] NSWCA 12 Austin v Hornby [2011] NSWSC 1059 Austotel Pty Ltd v Franklins Selfserve Pty Ltd (1989) 16 NSWLR 582 Australian Building and Technical Solutions Pty Ltd v Boumelhem [2009] NSWSC 460 Australian Olympic Committee Inc v The Big Fights Inc [1999] FCA 1042; 46 IPR 53 Bennett v Horgan (Supreme Court (NSW), 3 June 1994, unrep) Birmingham v Renfrew (1937) 57 CLR 666; [1937] HCA 52 Bismark Range (Lucknow) Gold Exploration NL v Wentworth (Lucknow) Goldfields NL (1935) 35 SR (NSW) 400 Blomley v Ryan (1956) 99 CLR 362; [1946] HCA 81 Blue Haven Enterprises Ltd v Tully [2006] UKPC 17 Brambles Holdings Limited v Bathurst City Council (2001) 53 NSWLR 153; [2001] NSWCA 61 Brand v Chris Building Co Pty Ltd [1957] VR 625 Browne v Dunn (1893) 6 R 67 Bulstrode v Trimble [1970] VR 840 Cameron v Murdoch [1983] WAR 321 Carter v Brine [2015] SASC 204 Cobbe v Yeoman's Row Management Ltd [2008] 1 WLR 1752; [2008] UKHL 55 Commercial Union Assurance Co of Australia Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR 389 Commissioner for Railways v Small (1938) 38 SR (NSW) 564 Commonwealth of Australia v Verwayen (1990) 170 CLR 394; [1990] HCA 39 Connex Group Australia Pty Ltd v Butt [2004] NSWSC 379 County Securities Pty Limited v Challenger Group Holdings Pty Limited [2008] NSWCA 193 Crabb v Arun District Council [1976] Ch 179 Crossman v Taylor (No 3) [2011] FCA 734 Crown Melbourne Ltd v Cosmopolitan Hotel (Vic) Pty Ltd (2016) 333 ALR 384; [2015] HCA 26 Cubillo v Commonwealth (2000) 103 FCR 1; [2000] FCA 1084 Curwen v Vanbreck Pty Ltd (2009) 26 VR 335; [2009] VSCA 284 Day v Perisher Blue Pty Ltd (2005) 62 NSWLR 731; [2005] NSWCA 110 Dean v Aylward [2017] NSWSC 972 Delaforce v Simpson-Cook (2010) 78 NSWLR 483; [2010] NSWCA 84 Deposit & Investment Co td v Peat Marwick Mitchell [1996] 39 NSWLR 267 Dewhirst v Edwards [1983] 1 NSWLR 34 DHJPM Pty Ltd v Blackthorn Resources Ltd (2011) 83 NSWLR 728; [2011] NSWCA 348 Dillwyn v Llewelyn (1862) 4 De G F & J 517; 45 ER 1285 Donaldson v Freeson (1933) 33 SR (NSW) 460 Donis v Donis (2007) 19 VR 577; [2007] VSCA 89 Doueihi v Construction Technologies Australia Pty Ltd (2016) 92 NSWLR 247; [2016] NSWCA 105 E K Nominees Pty Ltd v Woolworths Ltd [2006] NSWSC 1172 Eade v Vogiazopoulos (No 2) [1999] 3 VR 889 Ellis v Wallsend District Hospital (1989) 17 NSWLR 553 Equititrust Ltd v Franks [2009] NSWCA 128 Evans v Evans [2011] NSWCA 92 Fermiscan v James [2009] NSWSC 474 Fisher v Brooker [2009] 1 WLR 1764; [2009] UKHL 41 Flinn v Flinn [1999] 3 VR 712; [1999] VSCA 109 Galaxidis v Galaxidis [2004] NSWCA 111 Gillett v Holt [2001] Ch 210 Giumelli v Giumelli (1999) 196 CLR 101; [1999] HCA 10 Goody v Baring [1956] 1 WLR 448 Grant v Edwards [1986] Ch 638 Gray v Gray [2004] NSWCA 408; (2004) BPR 22,755 Green v Green (1989) 17 NSWLR 343; 13 Fam LR 336 Grundt v Great Boulder Pty Gold Mines Ltd (1937) 59 CLR 641; [1937] HCA 58 Halifax Building Society v Thomas [1996] Ch 217 Hamilton v Geraghty (1901) 1 SR (NSW) Eq 81 Hamilton-Smith v George [2006] FCA 1551 Hammond v Hammond [2010] NSWSC 331 Harman v Secretary of State for the Home Department [1983] 1 AC 280 Harrison v Harrison [2011] VSC 459 J Aron Corporation v Newmont Yandal Operations [2004] NSWSC 996 John Alexander's Clubs Pty Limited v White City Tennis Club Limited (2010) 241 CLR 1; [2010] HCA 19 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Jorden v Money (1854) 5 HLC 185 Kennon v Spry (2008) 238 CLR 366; [2008] HCA 56 King v Adams [2016] NSWSC 1798 Kuhl v Zurich Financial Services Australia Ltd (2011) 243 CLR 361; [2011] HCA 11 La Trobe Capital & Mortgage Corp Ltd v Hay Property Consultants Pty Ltd (2011) 190 FCR 299; [2011] FCAFC 4 Legione v Hateley (1983) 152 CLR 406; [1983] HCA 11 Lester v Woodgate [2010] EWCA Civ 199 Low v Bouverie [1891] 3 Ch 82 Masters v Cameron (1954) 91 CLR 353; [1954] HCA 72 Mathiesen v Clintons (A Firm) [2013] EWHC 3056 McNab v Graham [2017] VSCA 352 Miller Heiman Pty Ltd v Sales Principles Pty Ltd [2017] NSWCA 106 Milling v Hardie [2014] NSWCA 163 Mineralogy Pty Ltd v Sino Iron Pty Ltd (No 6) [2015] FCA 825 Moffat v Sheppard; Alexander v Sheppard (1909) 9 CLR 265; [1909] HCA 22 Morgan v 45 Flers Avenue Pty Ltd (1986) 10 ACLR 692 Muschinski v Dodds, (1985) 160 CLR 583; [1985] HCA 78 National Westminster Bank plc v Somer International (UK) Ltd [2002] 3 WLR 64 New Galaxy Investments Pty Ltd v Thomson [2017] NSWCA 153 New South Wales Trotting Club Ltd v Glebe Municipal Council (1937) 37 SR (NSW) 288 Newbon v City Mutual Life Assurance Society Ltd (1935) 52 CLR 723; [1935] HCA 33 Nguyen v Cosmopolitan Homes [2008] NSWCA 246 Nguyen v Phan (No 2) [2015] VSC 634 Nolan v Nolan [2015] QCA 199 NSW Rifle Association Inc v Commonwealth [2012] NSWSC 818; 293 ALR 158 Osborne Metal Industries v Bullock (No 1) [2011] NSWSC 636 Pascoe v Turner [1979] 1 WLR 431,438 Plimmer v The Mayor, Councillors and Citizens of the City of Wellington (1884) LR 9 App Cas 699 Portland Downs Pastoral Company Pty Ltd v Great Northern Developments Pty Ltd [2012] QCA 18 Priestley v Priestley [2016] NSWSC 1096 Priestley v Priestley [2017] NSWCA 155 Ramsden v Dyson (1866) LR 1 HL 129 Raymond v Cook (1997) 29 ACSR 252 Re Basham, decd [1986] 1 WLR 1498 Re Dovico; Ex parte Mayne Weatherall [2012] NSWSC 822 Re Polyresins Pty Ltd (1998) 16 ACLC 1,674 Re Richardson & Wrench Holdings Pty Ltd [2013] NSWSC 1990; 97 ACSR 351 Re Spargos Mining NL (1990) 3 WAR 166; 3 ACSR 1 Rodda v Ian Rodda Pty Ltd (No 2) [2015] SASC 128 Rodda v Ian Rodda Pty Ltd [2015] SASC 95 Rodger v De Gelder (2011) 80 NSWLR 594; [2011] NSWCA 97 Samm Property Holdings Pty Ltd v Shaye Properties Pty Ltd [2017] NSWCA 132; 345 ALR 633 Schellenberg v Tunnel Holdings Pty Ltd (2000) 200 CLR 121; [2000] HCA 18 Schmierer v Taouk [2004] NSWSC 345; 207 ALR 301 Scottish Newcastle plc v Lancashire Mortgage Corporation Ltd [2007] EWCA Civ 684 Shepherd v Doolan [2005] NSWSC 42 Sidhu v Van Dyke (2014) 251 CLR 505; [2014] HCA 9 Silovi Pty Ltd v Barbaro (1988) 13 NSWLR 466 Sivritas v Sivritas [2008] VSC 374 Steria Ltd v Hutchison [2007] ICR 445; [2006] EWCA Civ 1551 Stone v Stone [2014] NSWSC 1655 Sullivan v Sullivan [2006] NSWCA 312 Svenson v Payne (1945) 71 CLR 531; [1945] HCA 43 Tanwar Enterprises Pty Ltd v Cauchi (2003) 217 CLR 315; [2003] HCA 57 Taylors Fashions Ltd v Liverpool Victoria Trustees Co Ltd [1981] 2 WLR 576 The Commercial Bank of Australia Limited v Amadio (1983) 151 CLR 447; [1983] HCA 14 The Nominal Defendant v Clements (1960) 104 CLR 476; [1960] HCA 39 Thorner v Major [2009] 1 WLR 776 Thornton v State of NSW [2015] NSWDC 251 Traderight (NSW) Pty Ltd v Bank of Queensland Limited (No 12) [2012] NSWSC 1363 United Dominions Corporation Ltd v Brian Pty Ltd (1985) 157 CLR 1; [1985] HCA 49 Varma v Varma [2010] NSWSC 786 Vukic v Grbin [2006] NSWSC 41 Waaka v Francois [2017] NSWSC 744 Waddell v Waddell [2012] NSWCA 214 Walton v Walton (Court of Appeal of England and Wales, unreported, 14 April 1994) Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387; [1988] HCA 7 Watson v Foxman (1995) 49 NSWLR 315 Watson v James [1999] NSWSC 600 Wayde v New South Wales Rugby League Ltd (1985) 180 CLR 459; [1985] HCA 68 Weatherall v Satellite Receiving Systems (Australia) Pty Ltd [1999] FCA 218 Westdeutsche Bank v Islington LBC [1996] AC 669 Willmott v Barber (1880) 15 Ch D 96 Yaroomba Beach Development Company Pty Ltd v Coeur De Lion Investments Pty Ltd (1989) 18 NSWLR 398 Texts Cited: A Silink, "Causation in Equitable Estoppel" (2016) 43 Australian Bar Review 320 AJ Black, "Modern Indicia of fiduciary relationships in a commercial setting and the interaction of equity and contract" (15 November 2017, Supreme Court (NSW) Corporate and Commercial Law Conference) B McFarlane, The Law of Proprietary Estoppel (2014, Oxford University Press) E Sykes, "The Doctrine of Constructive Trusts" (1941) 15 Australian Law Journal 171 JD Heydon and MJ Leeming, Cases and Materials on Equity and Trusts (8th ed, 2011, LexisNexis) JD Heydon, MJ Leeming, PG Turner, Meagher, Gummow & Lehane's Equity: Doctrines and Remedies (5th ed, 2015, LexisNexis) K Handley, "Recent Cases" (2017) 91 Australian Law Journal 812 K Handley, Estoppel by Conduct and Election (2nd ed, 2016, Sweet & Maxwell) P Feltham et al, Spencer Bower: Reliance-Based Estoppel (5th ed, 2017, Bloomsbury) P Young, C Croft, ML Smith, On Equity (2009, Thomson Reuters) R Goff and G Jones, The Law of Restitution (2nd ed, 1978, Sweet & Maxwell) Snell's Equity (32nd edition, 2010) Category: Principal judgment Parties: "E Co" (First Plaintiff) "EM Co" (Second Plaintiff) "A" (Third Plaintiff) "B" (Fourth Plaintiff) "C" (Fifth Plaintiff) "First Defendant" (First Defendant) "Second Defendant" (Second Defendant) Representation: Counsel: AJ McInerney SC with N Kabilafkas (Plaintiffs) J Priestley SC with B Lloyd (Defendants)