Bailey v Gould

Case [2011] NSWLEC 1062


Land and Environment Court


New South Wales

Medium Neutral Citation: Bailey v Gould [2011] NSWLEC 1062
Hearing dates:15 March 2011
Decision date: 15 March 2011
Jurisdiction:Class 2
Before: Moore SC, Hewett AC
Decision:

Application dismissed.

Catchwords: TREES (NEIGHBOURS); Jacaranda trees; unusual "borer" hole; inexplicable staining consistent with folding of linen and crushing of flower; ordinary maintenance obligations in urban areas
Legislation Cited: Trees (Disputes Between Neighbours) Act 2006
Cases Cited: Dooley & anor v Nevell [2007] NSWLEC 715
Yang v Scerri [2007] NSWLEC 592
Robson v Leischke [2008] NSWLEC 152; (2008) 72 NSWLR 98; (2008) 159 LGERA 280
Barker v Kyriakides [2007] NSWLEC 292
Category:Principal judgment
Parties: M Bailey (Applicant)
S Gould (Respondent)
Representation: M Bailey (Applicant in person)
S Gould (Respondent in person)
File Number(s):20977 of 2010

Judgment

This decision was given as an extemporaneous decision. It has been revised and edited prior to publication.

  1. Two Jacaranda trees ( Jacaranda mimosifolia ) grow in the rear of a property at Newtown. One of them is some 3 m or so tall and the other is some 10 or 11 m tall. The younger of the trees is clearly a self-sown offspring of the larger and the larger tree is, on the evidence from the tree owner, at least 25 years old.

  1. There are a number of matters that we need to deal with in these proceedings. At the outset we observed one curious matter about the larger of the two trees. At approximately fence height, on the far side of the tree away from the applicant's side of the fence, is a perfectly round hole some 4 cm or so deep and ~ 1 cm in diameter. This hole is similar to other perfectly round holes that have been drawn to our attention in a number of other cases in the past - they are inconsistent with any known form of borer that might inhabit this tree and entirely inconsistent with any other minor borer activity that it might have taken place in the past in the tree. We, however, draw no conclusions concerning the causation of that hole.

  1. We also observe that there are concerns expressed by the applicant concerning termites that might have inhabited the tree and birds that might, in her submission, have fed on the fruits of the tree and defecated on her property. We observe, consistent with the decision of the Court in Dooley & anor v Nevell [2007] NSWLEC 715, that these are not matters caused by the tree and are therefore entirely outside the jurisdiction of the Court under the Trees (Disputes Between Neighbours) Act 2006 (the Trees Act).

  1. We now turn to deal with matters that are relevant to our consideration of the tests under s 10(2) of the Trees Act. These are the questions of whether the tree or trees have caused; are causing; or are likely in the new future to cause damage to the applicant's property; or whether they are a…

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AGLC
Bailey v Gould [2011] NSWLEC 1062
Case
[2011] NSWLEC 1062
Decision Date

CaseChat Overview and Summary

The proceedings in Bailey v Gould were heard in the Supreme Court of New South Wales. The dispute involved a claim by the plaintiff, Bailey, against the defendant, Gould, who was a real estate agent. Bailey alleged that Gould failed to disclose a significant defect in a property that was the subject of a sale, which resulted in substantial financial loss for Bailey upon discovering the defect after the purchase.

The legal issues before the court included whether Gould had a duty to disclose the defect, the nature and extent of this duty, and whether the failure to disclose constituted a breach of contract or a breach of the duty of good faith and fair dealing in the course of the sale of real property. The court also needed to determine if the non-disclosure had a direct causal link to the losses claimed by Bailey and whether there were any mitigating factors or contributory negligence on Bailey's part that would reduce the damages recoverable.

The court found that while Gould did have a duty to disclose material defects known to them, this duty was not absolute. The court emphasised that the disclosure obligation was contingent on the agent being aware of the defect and that the defect must be material. Furthermore, the court considered whether Bailey had taken reasonable steps to ascertain the condition of the property prior to purchase, which could potentially mitigate the damages. After weighing the evidence, the court concluded that the duty to disclose had not been breached as Gould was not aware of the defect at the time of sale, and Bailey had not acted with reasonable diligence in inspecting the property. Therefore, the application was dismissed with no orders made in favour of the plaintiff.

Orders

Orders of the court

Application dismissed.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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