Bloom as Executor of the Estate of Farr (deceased) v Paradise Lake Pty Ltd (No.2)

The applicant, Mr Bloom as Executor of the Estate of Farr (deceased), sought equitable compensation from the respondent, Paradise Lake Pty Ltd, concerning the sale of a property. The dispute arose from Paradise Lake's failure to disclose to Mr Bloom that the director of the purchasing company, Ripcord, was associated with Paradise Lake's directors. The matter was heard in the Federal Circuit Court of Australia.

The court was required to determine whether the property, known as Site No: 155 Paradise Lake Resort, 368 Oxley Drive, Runaway Bay, had a market value at the time of sale that exceeded the price for which it was sold. This determination was central to assessing the quantum of equitable compensation to which Mr Bloom was entitled, as agreed by the parties in circumstances of material non-disclosure.

The court's reasoning focused on assessing the expert valuations provided by Mr Hamilton for Mr Bloom and Mr Stanaway for Paradise Lake. While neither valuation was objected to, the court noted that an unreasoned opinion, even if admitted, would be given little weight. The primary difference in the valuations stemmed from differing assumptions regarding the condition of the property at the time of sale. Mr Hamilton assumed the property was in fair, structurally sound condition, whereas Mr Stanaway assumed it required significant work. The court applied the classical definition of market value from *Spencer v The Commonwealth*, which involves ascertaining what a willing buyer would have had to pay a willing seller for the property at the relevant time.

The court found that the property had a market value at the time of sale that exceeded the price for which it was sold, leading to an award of equitable compensation in favour of Mr Bloom.