S T Investment Pty Ltd v Geng [2020] NSWSC 329

Supreme Court New South Wales

Medium Neutral Citation: S T Investment Pty Ltd v Geng [2020] NSWSC 329 Hearing dates: 20 August, 30 October 2019; 27 February, 23 March 2020 Date of orders: 31 March 2020 Decision date: 31 March 2020 Jurisdiction: Equity Before: Darke J Decision: Judgment to be entered in favour of plaintiff in the sum of $764,944.84. Catchwords: LAND LAW – Contract for the sale of land – Purchaser fails to pay agreed deposit of 10% of purchase price – Purchaser unwilling and unable to complete – Contract terminated following Purchaser's failure to complete – Vendor promptly resells property for a lower price – Vendor seeks recovery of deposit and damages under cl 9 of standard form contract – Whether provision for recovery of deposit is a penalty – Recovery of damages for deficiency on resale and costs and expenses arising from breach – Damages for loss of bargain – Whether provision for interest if completion delayed is a penalty Cases Cited: Andrews v Australia and New Zealand Banking Group Ltd [2012] HCA 30; (2012) 247 CLR 205 Buchanan v Dunstan [2007] NSWSC 248 Carpenter v McGrath (1996) 40 NSWLR 39 Commissioner of Taxation v Reliance Carpet Co Pty Limited (2008) 236 CLR 342; [2008] HCA 22 Donnellan v Garlick (2006) 12 BPR 23,571; 2006 NSWSC 132 Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79 Galafassi v Kelly (2014) 87 NSWLR 119; [2014] NSWCA 190 Golding v Vella (2001) 10 BPR 18,919; (2003) NSW ConvR 56-044 Hadley v Baxendale (1854) 9 Exch 341 Havyn Pty Ltd v Webster (2005) 12 BPR 22,837; [2005] NSWCA 182 Iannello v Sharpe (2007) 69 NSWLR 452; [2007] NSWCA 61 Jampco Pty Ltd v Cameron (No 2) (1985) 3 NSWLR 391 Kazacos v Shuangling International Development Pty Ltd (2016) 18 BPR 36,353 Luu v Sovereign Developments Pty Ltd [2006] NSWCA 40 Murdaca v Fisher (1981) 2 BPR 9287 Ng v Filmlock Pty Ltd (2014) 88 NSWLR 146; [2014] NSWCA 389 Paciocco v Australia and New Zealand Banking Group Ltd [2016] HCA 28; (2016) 258 CLR 525 Ringrow Pty Ltd v BP Australia Pty Ltd (2005) 224 CLR 656; [2005] HCA 71 Ronnoc Finance Ltd v Spectrum Network Systems Ltd (1997) 45 NSWLR 624 Socratous v Koo (1993) 6 BPR 13,226; (1993) NSW Conv R 55-685 Sunbird Plaza Pty Ltd v Maloney (1988) 166 CLR 245 Tabcorp Holdings Ltd v Bowen Investments Pty Ltd (2009) 236 CLR 272; [2009] HCA 8 Tiplady v Gold Coast Carlton Pty Ltd (1984) 54 ALR 337 Taylor v Raglan Developments Pty Ltd [1981] 2 NSWLR 117 Category: Principal judgment Parties: S T Investment Pty Ltd (Plaintiff) Yan Geng (Defendant) Representation: Counsel: Mr J E Thomson (Plaintiff) Mr C D Wood SC (Defendant)