Fox v Dockrey

In *Fox and Anor v Dockrey*, the New South Wales Court of Appeal considered a dispute between the appellants, Mr and Mrs Fox, and the respondent, Mr Dockrey, concerning the sale of a property. The core of the disagreement revolved around whether the respondent had breached his contractual obligations as a real estate agent in facilitating the sale of the appellants' property.

The primary legal issue before the Court of Appeal was whether the respondent had acted in breach of his fiduciary duty to the appellants by failing to disclose material information relevant to the sale. Specifically, the court had to determine if the respondent had a duty to inform the appellants that a prospective purchaser, who had made an offer through the respondent, was acting as a nominee for another party who had previously expressed interest in purchasing the property at a lower price.

The Court of Appeal found that the respondent had indeed breached his fiduciary duty. The court reasoned that a real estate agent owes a duty of utmost good faith and loyalty to their principal. This duty requires the agent to disclose all material information that could affect the principal's decision-making process. In this instance, the fact that the ultimate purchaser was the same party who had previously offered a lower price was considered highly material, as it could have influenced the appellants' decision to accept the offer made through the respondent. The court applied the established legal principles governing fiduciary relationships, emphasizing the agent's obligation to act solely in the best interests of their principal and to avoid any conflict of interest or undisclosed profit.

The Court of Appeal allowed the appeal, setting aside the orders of the primary judge and remitting the matter for a new trial on the issue of damages.