Emmons Mount Gambier Pty Ltd v Specialist Solicitors Network Pty Ltd

Emmons Mount Gambier Pty Ltd (the appellant) appealed to the Supreme Court of New South Wales, Court of Appeal, against a judgment of the trial judge in favour of Specialist Solicitors Network Pty Ltd (the respondent). The dispute concerned whether the respondent was entitled to a commission for the sale of a property, despite the sale ultimately being effected by a second agent.

The primary legal issue before the Court of Appeal was to determine whether the respondent had been the effective cause of the sale of the property, thereby entitling them to commission. This involved considering the extent to which the respondent's initial efforts in introducing the purchaser to the property continued to influence the eventual sale, and the significance of the introduction of a second agent in the transaction. The court also had to assess the onus of proof in establishing the respondent's entitlement to commission.

The Court of Appeal found that the trial judge had erred in concluding that the respondent was the effective cause of the sale. Their Honours reasoned that while the respondent had made an initial introduction, the subsequent actions of the second agent were crucial in bringing about the sale. Specifically, the court emphasised the importance of the second agent's independent introduction of the purchaser and their subsequent negotiations on price, which were distinct from the respondent's earlier efforts. The court held that the respondent had not discharged the onus of proving that their initial introduction remained the effective cause of the sale.

Consequently, the appeal was allowed. The verdict and judgment of the trial judge were set aside, and judgment was entered for the appellant. The respondent was ordered to pay the appellant’s costs of the proceedings and the appeal, subject to a Suitors’ Fund certificate for the appeal if otherwise entitled.