Fairborne Pty Ltd v Strata Store Noosa Pty Ltd (No. 2)

Fairborne Pty Ltd sought an order for specific performance against Strata Store Noosa Pty Ltd and others, concerning the sale of property located at Lot 302 Lionel Donovan Drive, Noosaville. The dispute revolved around the time frame for completing the transaction, with Fairborne proposing a 45-day settlement period, while Strata Store Noosa sought a six-month period, citing the complexity and size of the transaction as justification. Fairborne argued that the extended period was unreasonable and that Strata Store Noosa had already enjoyed significant time under the contract. The court had to determine whether the six-month period requested by Strata Store Noosa was justified and whether Fairborne was entitled to specific performance of the contract.

The legal issues addressed by the court included whether the six-month settlement period was reasonable given the nature of the transaction and the amount of time already granted under the contract. The court also considered Fairborne’s application for costs on an indemnity basis, arguing that Strata Store Noosa had resisted the application for specific performance in disregard of known facts and established law. Additionally, the court examined whether it was appropriate to make a costs order against other respondents, given that the claim against them was premature. The court needed to balance the principles of fairness and the established rules on costs with the need to protect parties from unjustified litigation expenses.

The court ruled that Strata Store Noosa should specifically perform the contract, setting a new completion date of 27 November 2009. It dismissed Fairborne’s application against the second, third, and fourth respondents, finding that the claim against them was premature. Regarding costs, the court ordered Strata Store Noosa to pay Fairborne’s costs on a standard basis, but denied Fairborne’s request for an indemnity costs order. The court found that while Strata Store Noosa’s resistance was unreasonable, it was not so egregious as to warrant an indemnity costs order. Fairborne was ordered to pay the costs of the second, third, and fourth respondents, as their inclusion in the proceedings was premature.

The court made specific orders to facilitate the completion of the transaction, including requiring Fairborne to notify Strata Store Noosa of the settlement details at least seven business days before the new completion date. The judgment provided clarity on the completion timeline and addressed the costs implications of the dispute, ensuring that the parties understood their financial obligations arising from the litigation.