Fu Tian Fortune Pty Ltd v Park Cho Pty Ltd [2018] NSWSC 528

Supreme Court New South Wales

Medium Neutral Citation: Fu Tian Fortune Pty Ltd v Park Cho Pty Ltd [2018] NSWSC 528 Hearing dates: 5 & 6 March 2018 Date of orders: 30 April 2018 Decision date: 24 May 2018 Jurisdiction: Equity Before: Slattery J Decision: Plaintiff not entitled to deposit. Defendant/cross- claimant entitled to damages in the agreed sum of $100,000. Summons dismissed. Order for costs made on the ordinary basis unless motion filed seeking some other order within 7 days. Catchwords: LAND LAW - Conveyancing - Contract for sale - defendant/vendor alleges contract novated from second plaintiff (the original purchaser) to first plaintiff (the alleged new purchaser) - novation contested by plaintiffs - Notice of Termination issued by vendor to the first plaintiff - whether termination effective - first plaintiff initially sought declaration that the contract for sale was on foot and specific performance claim for a declaration and specific performance later abandoned - plaintiffs seek return of deposit in the alternative - cross claim by vendor seeking to retain deposit - whether vendor entitled to retain deposit under Conveyancing Act 1919, s 55(2A). Legislation Cited: Conveyancing Act 1919, s 55(2A) Real Property Act 1900, s 42(1)(d) Retail Leases Act 1994, s 16 Cases Cited: A Jones & Son Pty Ltd v Weeden [1964 – 1965] NSWR 1780 Alcova Holdings Pty Limited v Pandarlo Pty Ltd (1988) 15 NSWLR 53 Eighth SRJ Pty Ltd v Merity (1997) 7 BPR 97,635 Fightvision Pty Ltd v Onisforou (1999) 47 NSWLR 473 Lucas & Tait (Investments) Pty Ltd v Victoria Securities Ltd [1973] 2 NSWLR 268 HG & R Securities Pty Limited v Sayer [2009] NSWSC 427 Maralinga Pty Ltd v Major Enterprises Pty Ltd [1972] 2 NSWLR 101 McMahon v National Foods Milk Ltd (2009) 25 VR 251 Olsson v Dyson (1969) 120 CLR 365 Orica Ltd v Commissioner of Taxation (Cth) [2010] FCA 197 Poort v Development Underwriting (Victoria) Pty Ltd (No 2) [1977] VR 454 Saunders v Leonardi (1976) 1 BPR 97,042 Schindler v Pigault (1975) 30 P & CR 328 Upper Hunter County Council v Australian Chilling and Freezing Co Pty (1968) 118 CLR 429 Vickery v Woods (1952) 85 CLR 336 Texts Cited: CJ Rossiter, Requisitions and Objections on Title: The time for delivery; the vendor's obligation to answer properly made requisitions; the purchaser's remedy for inadequate or erroneous answers (2000) 8 APLJ 97 JW Carter, Breach of Contract (2nd ed, 1991, The Law Book Company Ltd) RP Meagher, JD Heydon, MJ Leeming, Meagher, Gummow & Lehane's Equity: Doctrines and Remedies (5th ed, 2015, LexisNexis Butterworths) Category: Principal judgment Parties: First Plaintiff/Cross Defendant: Fu Tian Fortune Pty Ltd ACN 611 503 256 Second Plaintiff/Cross Defendant: Defu Zhang Defendant/Cross Claimant: Park Cho Pty Ltd ACN 096 066 250 Representation: Counsel: Plaintiffs/Cross Defendants: G.W. McGrath SC; A. Norrie Defendant/Cross Claimant: N. Kirby