Bullhead Pty Ltd (ACN 130 124 088) v Brickmakers Place Pty Ltd (in Liq) (ACN 128 994 749) (and others according to the attached schedule)

Bullhead Pty Ltd, as trustee for a unit trust established for property development, sought to recover losses arising from the issuance of discounted units to some investors in breach of the trust deed. The defendants, including Brickmakers Place Pty Ltd in liquidation and others, argued that Bullhead had released them from all claims through a finalisation agreement. The matter was heard by the Supreme Court of New South Wales.

The legal issues before the court were whether the trial judge correctly determined that Bullhead had released the defendants from all claims through the finalisation agreement, and if all defendants were bound by the agreement. Additionally, the court had to consider whether Bullhead's lack of full knowledge of the circumstances of the breach of trust rendered the release of equitable claims unenforceable. The court also examined whether the defendants were entitled to rely on equitable estoppel to prevent Bullhead from enforcing its claims, given their lack of clean hands.

The court held that the trial judge's finding that Bullhead had released the defendants from all claims through the finalisation agreement was not supported by the evidence. The court found that the finalisation agreement was not enforceable as it was not clear that Bullhead had the requisite knowledge and understanding of the circumstances of the breach of trust when it executed the agreement. The court also found that the defendants were not entitled to rely on equitable estoppel as they did not have clean hands due to their involvement in the breach of trust. The appeal was allowed, and the orders of the trial judge were set aside.

The court ordered that Bullhead's appeal be allowed and that the orders of the trial judge be set aside. The court made no order as to costs.