Crawford v Steadmark Pty Ltd (No.2)

In *Crawford v Steadmark Pty Ltd (No.2)*, O'Sullivan J of the Supreme Court of South Australia considered an application for an order that a caveat lodged by the plaintiff, Mr. Crawford, against land owned by the defendant, Steadmark Pty Ltd, be removed. The dispute arose from an alleged agreement for the sale of the land, which the defendant denied. The plaintiff sought to maintain the caveat to protect his claimed interest in the land pending the determination of his substantive claim for specific performance of the alleged sale agreement.

The central legal issue before the court was whether the plaintiff had established a sufficient caveatable interest in the land to justify the continued existence of the caveat. This required the court to assess the strength of the plaintiff's evidence regarding the existence of a binding agreement for the sale of the land, and whether such an agreement, if proven, would confer an equitable interest capable of supporting a caveat. The court also had to consider the principles governing the removal of caveats, particularly where the caveator's claim is disputed.

O'Sullivan J applied the established principles for determining whether a caveatable interest exists. His Honour noted that a caveator must demonstrate a *prima facie* case that they have an equitable interest in the land. This involves showing that there is a serious question to be tried regarding the existence of the alleged agreement and that the balance of convenience favours the maintenance of the caveat. In this instance, the court found that the plaintiff had not presented sufficient evidence to establish a *prima facie* case of a binding agreement for sale, noting significant deficiencies in the documentation and the defendant's denial of any concluded contract. The court considered the potential prejudice to the defendant if the caveat remained, particularly in relation to its ability to deal with its property.

Consequently, O'Sullivan J ordered the removal of the caveat lodged by the plaintiff.