ATB Morton Pty Ltd v Sentinel Property Group Pty Ltd

In the case of ATB Morton Pty Ltd v Sentinel Property Group Pty Ltd, the Supreme Court of Queensland was tasked with determining whether a caveat should be removed from property owned by Sentinel. ATB, the applicant, sought to remove the caveat, claiming an equitable interest in the property as a result of an unregistered option to purchase granted by Sentinel. The court needed to decide whether the exchange of correspondence between the parties constituted an enforceable contract and if there was a serious question to be tried regarding whether Sentinel had forgone any rights to specific performance through the conduct of its employees.

The court found that the application to remove the caveat raised questions of fact that needed to be determined at a trial. There was a serious question to be tried as to whether the exchange of correspondence constituted an enforceable contract and whether Sentinel had elected to forgo any rights to specific performance through the conduct of its employees. Additionally, the court considered the respondent's undertaking as to damages and found it unsuitable, which justified the removal of the caveat.

In conclusion, the court dismissed the application to remove the caveat at that stage and ordered that the matter should proceed to trial. The respondent was required to provide a bank guarantee of $250,000 within 14 days, in addition to the usual undertaking as to damages. The costs of the application were reserved to the proceeding to be commenced by the respondent against the applicant within 14 days of the date of the order.