Bisognin v Hera Project Pty Ltd

Case [2018] VSCA 93


SUPREME COURT OF VICTORIA

COURT OF APPEAL

S APCI 2017 0079

GINO ANDREW BISOGNIN and LEAH JOAN BISOGNIN Applicants
v
HERA PROJECT PTY LTD (ACN 163 685 041) Respondent

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JUDGES: TATE, KYROU and COGHLAN JJA
WHERE HELD: MELBOURNE
DATE OF HEARING: 29 August 2017
DATE OF JUDGMENT: 17 April 2018
MEDIUM NEUTRAL CITATION: [2018] VSCA 93
JUDGMENTS APPEALED FROM: [2017] VSC 268 (Riordan J), [2017] VSC 383 (Riordan J) and [2017] VSC 439 (Riordan J)

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CONTRACT – Contract for sale of land – Specific performance – Whether purchaser ready, willing and able to perform its obligations – Best endeavours obligation to expedite and procure the registration of subdivision – Obligation to pay fees to referral authorities clarified as imposed on purchaser, not vendors, by earlier decision of the Court of Appeal – Failure by purchaser to pay fees to referral authorities, or deduct amount from final settlement, before decision of the Court of Appeal – Purchaser made relevant payments after decision of Court of Appeal – No obligation in circumstances to entertain alternative interpretation of contractual obligations – Relevance to delay of vendors’ misleading conduct that they could obtain finance – Bishop v Taylor (1968) 118 CLR 518, DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423, Joseph Street Pty Ltd v Tan (2012) 38 VR 241 applied – Appeal dismissed.

PROPERTY – Whether judge erred in granting the purchaser access to the land – Whether proposed development must be identified in the contract of sale – Sale of Land Act 1962 s 9AD(3).

COSTS – Whether judge erred in not attaching a security for costs condition on grant of specific performance – Whether judge erred in awarding costs on an indemnity basis – Effect of late production during trial of alternative contract inconsistent with the vendors’ obligations under contract of sale – Effect of vendors’ misleading conduct – Oshlack v Richmond River Council (1998) 193 CLR 72 applied.

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APPEARANCES: Counsel Solicitors
For the Applicants Mr J Ribbands with
Mr W Stark and
Mr L Wirth
T F Grundy Lawyers
For the Respondent Mr N Pane QC with
Mr J Whelen
Russell Kennedy

TATE JA:

TABLE OF CONTENTS

Introduction and summary .  ...................................................................

2

Grounds of appeal   ...................................................................................

3

Background – Protracted litigation from contract of sale of land ....

4

(1)   The 2015 Contract ........................................................................

5

(2)   Steps taken between March and August 2015  .............................

8

(3)   Hearings before Cameron J (Practice Court) and Sloss J — dispute over contractual obligations  ..........................................................

12

(4)   Steps taken after Sloss J judgment; appeal to the Court of Appeal (4 March 2016 to 16 December 2016)   .........................................

20

(5)   Steps taken after Court of Appeal judgment until the hearing before Riordan J (17 December 2016 to 28 March 2017) .........................

32

(6)   The hearings before Riordan J and his findings .............................

35

Ground 1: Did the judge find that, as at the commencement of the proceeding, Hera was ready, willing and able to…

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AGLC
Bisognin v Hera Project Pty Ltd [2018] VSCA 93
Case
[2018] VSCA 93
Decision Date

CaseChat Overview and Summary

The dispute between Bisognin and Hera Project Pty Ltd was heard in the Supreme Court of Victoria. Bisognin sought specific performance of a contract for the sale of land, while Hera Project Pty Ltd argued that Bisognin was not ready, willing, and able to perform his contractual obligations. Additionally, Hera Project Pty Ltd contended that Bisognin failed to meet his contractual obligations regarding the payment of fees to referral authorities and the procurement of the registration of the subdivision. Hera Project Pty Ltd also sought to have the contract varied based on alleged misleading conduct by Bisognin about his ability to obtain finance.

The primary legal issues before the court were whether Bisognin was ready, willing, and able to perform his obligations under the contract, and if there was any obligation on Bisognin to entertain an alternative interpretation of his contractual obligations. The court also considered whether the judge had erred in granting Bisognin access to the land and whether the proposed development should have been identified in the contract of sale. Furthermore, the court examined the judge's decision not to attach a security for costs condition on the grant of specific performance, and whether the judge was correct in awarding costs on an indemnity basis.

The court found that Bisognin was ready, willing, and able to perform his obligations under the contract, and that there was no obligation for him to entertain an alternative interpretation of his contractual obligations. The court also held that the judge did not err in granting Bisognin access to the land or in requiring the identification of the proposed development in the contract of sale. Regarding the costs, the court determined that the judge's decision not to attach a security for costs condition and to award costs on an indemnity basis was appropriate, given the late production of an alternative contract and the misleading conduct by Hera Project Pty Ltd. The appeal was dismissed.

The court ordered that Bisognin be granted specific performance of the contract, with Hera Project Pty Ltd required to convey the land to Bisognin. Additionally, Bisognin was ordered to pay the outstanding purchase price, and Hera Project Pty Ltd was ordered to pay costs on an indemnity basis.

Orders

Orders of the court

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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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