Brundza v Robbie and Co

This case concerned an appeal to the High Court of Australia from a decision of the Supreme Court of Victoria. The appellant, Algirdas Brundza, had brought an action against Robbie & Co., a firm of real estate agents, seeking to recover a sum of £900 paid to one Liubinskas. The plaintiff alleged that Liubinskas had fraudulently obtained this money from him in contemplation of the purchase of a house, and that Robbie & Co. was liable to repay the sum. The trial judge had found for the defendant, Robbie & Co., and the plaintiff appealed.

The High Court was required to determine whether Robbie & Co. was liable for the moneys received by Liubinskas. Specifically, the court had to consider whether Liubinskas was a sub-agent of Robbie & Co. for the purposes of the transaction, and whether the moneys received by Liubinskas fell within the scope of section 34 of the *Real Estate Agents Act 1930* (Vict.). This section imposes personal liability on licensed real estate agents for moneys received by a sub-agent acting for them.

The Court reasoned that the evidence established a sufficient relationship between Robbie & Co. and Liubinskas to bring the matter within section 34 of the *Real Estate Agents Act 1930*. Despite Liubinskas not acting strictly within the terms of his authority in receiving the deposit, the Court found that he was acting in the course of his employment as a sub-agent for Robbie & Co. when he received the moneys. The Court noted that the purpose of section 34 was to protect the public from fraudulent conduct by sub-agents, and that the liability of the licensed agent extended to moneys received by the sub-agent even if outside the precise scope of their authority, provided they were acting as a sub-agent. The Court also considered the common law claims, finding that the £360 paid by the plaintiff was not recoverable from Robbie & Co. as Robinson had no involvement with that transaction. However, regarding the £540, the Court found that it was open to infer that Liubinskas was authorised by Robinson to collect a deposit for the North Fitzroy property, and that the plaintiff's claim for money had and received was appropriate.

The High Court reversed the decision of the Supreme Court of Victoria. The Court held that Robbie & Co. was liable under section 34 of the *Real Estate Agents Act 1930* for the £540 received by Liubinskas. The appeal was allowed in part, with the case remitted to the Chief Justice with answers indicating that the plaintiff could recover £540.