NEW SOUTH WALES COURT OF APPEAL
CITATION:
Abadeen Group Pty Ltd & Anor v Bluestone Property Services Pty Ltd & Ors; Brown & Ors v Hodgkinson & Ors [2009] NSWCA 386
This decision has been amended. Please see the end of the judgment for a list of the amendments.
FILE NUMBER(S):
40156/09
40157/09
HEARING DATE(S):
30 September 2009
JUDGMENT DATE:
7 December 2009
PARTIES:
CA 40156/09
Abadeen Group Pty Ltd (First Appellant)
Brooke Brown (Second Appellant)
Bluestone Property Services Pty Ltd (First Respondent)
Namsauh Holdings Pty Ltd (Second Respondent)
St Kilda Rd Developments Pty Ltd (in liquidation) (Third Respondent)
CA 40157/09
Justin Brown (First Appellant)
Sharlotte Pty Limited (Second Appellant)
Abadeen Group Pty Ltd (Third Appellant)
Lighter Quay Investments Limited (Fourth Appellant)
Greenberg Investment Development Limited (Fifth Appellant)
Lance Hodgkinson (First Respondent)
Bluestone Property Services Pty Ltd (Second Respondent)
230 Palmer Street Pty Ltd (Third Respondent)
Daniel Hausman (Fourth Respondent)
Crown Street Developments Pty Ltd (Fifth Respondent)
St Kilda Rd Developments Pty Ltd (in liquidation) (Sixth Respondent)
Gorcha Pty Ltd (Seventh Respondent)
JUDGMENT OF:
Hodgson JA Campbell JA Sackville AJA
LOWER COURT JURISDICTION:
Supreme Court
LOWER COURT FILE NUMBER(S):
SC 4043/08, 2008/08
LOWER COURT JUDICIAL OFFICER:
Palmer J
LOWER COURT DATE OF DECISION:
8 April 2009
LOWER COURT MEDIUM NEUTRAL CITATION:
Brown & Ors v Hodgkinson & Ors [2009] NSWSC 262
COUNSEL:
I Jackman SC and J P Donohoe (Appellants)
P Durack SC and R Francois (Respondents)
SOLICITORS:
Pattin Bell Davey Lawyers (Appellants)
Clayton Utz (Respondents)
CATCHWORDS:
CONTRACT - terms of a commercial agreement recorded in a handwritten note - whether parties signing the note intended to conclude an enforceable bargain - significance of a statement that a solicitor would have to draft an agreement properly - whether the parties needed agreement as to all terms necessary to conclude a contract
LEGISLATION CITED:
Conveyancing Act 1919, s 54A
CATEGORY:
Principal judgment
CASES CITED:
Air Great Lakes Pty Ltd v K S Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309
Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540
B Seppelt & Sons Ltd v Commissioner for Main Roads (1975) 1 BPR 9147
Barrier Wharfs Ltd v W Scott Fell & Co Ltd [1908] HCA 88; 5 CLR 647
Baulkham Hills Private Hospital Pty Ltd v G R Securities Pty Ltd (1986) 40 NSWLR 622
Brambles Holdings Ltd v Bathurst City Council [2001] NSWCA 61; 53 NSWLR 153
Clifton v Palumbo [1944] 2 All ER 497
G R Securities Pty Ltd v Baulkham Hills Private Hospital Pty Ltd (1986) 40 NSWLR 631
L’Estrange v Graucob Ltd [1934] 2 KB 394
Masters v Cameron [1954] HCA 72; 91 CLR 353
Pacific Carriers Ltd v BNP Paribas [2004] HCA 35; 218 CLR 451
Ryledar Pty Ltd v Euphoric Pty Ltd [2007] NSWCA 65; 69 NSWLR 603
Sinclair, Scott & Co v Naughton [1929] HCA 34; 43 CLR 310
Tasman Capital Pty Ltd v Sinclair [2008] NSWCA 248
Thorby v Goldberg [1964] HCA 41
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- Case
- [2009] NSWCA 386
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the Court of Appeal were whether the parties intended to conclude an immediately binding contract based on the handwritten note, and if so, whether the agreement was void for uncertainty. The court also considered the significance of a statement made at the meeting that a solicitor would need to draft a formal agreement, and whether agreement had been reached on all essential terms necessary to form a concluded contract.
Hodgson and Campbell JJA, and Sackville AJA dismissed the appeal, upholding Palmer J's findings. The court reasoned that the evidence, including the denials by Messrs Hodgkinson and Hausman that they intended to be immediately bound, and the inherent improbability of such an immediate commitment given the parties' financial difficulties and the complexity of the development, did not support the existence of a concluded agreement. Furthermore, Mr Brown's subsequent email referring to the establishment of a "Heads of Agreement" indicated that the handwritten note was likely a preliminary document, not a binding contract. The court also noted that numerous essential terms remained to be clarified by a solicitor, supporting the conclusion that there was no common intention to be immediately and unconditionally bound.
The appeals were dismissed with costs.
Orders
Orders of the court
Appeals dismissed with costs
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
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