Gray v Gray

In the case of Gray v Gray, the dispute involved the sale of a property by auction under section 126 of the Property Law Act 1969 (WA). The plaintiffs, Robert and Ashley, sought to have the property sold by public auction and requested various orders regarding the conduct of the sale and the setting of the reserve price. The defendant, Murray, opposed these requests and argued against certain aspects of the plaintiffs' proposed sale conditions.

The primary legal issue before the court was whether the plaintiffs were entitled to an order for the sale of the property pursuant to section 126(1) of the Property Law Act, and if so, what specific conditions should govern the sale. This included determining the appropriate reserve price for the auction and which party should conduct the sale. The court had to balance the statutory provisions with the evidence presented regarding the property's value and market conditions.

The court considered the valuation report by Mr Cooper, which indicated that the property's value lay primarily in the land rather than the improvements. The report suggested a market value range for the land and recommended a reserve price towards the lower end of this range. The court also took into account the limited comparable sales evidence available and the fluctuating market conditions. After weighing the submissions from both parties and the statutory framework, the court ruled in favour of the plaintiffs and granted the sale orders as requested, subject to certain modifications.

The final orders included provisions for the property to be sold by public auction, with the plaintiffs or their solicitors having the conduct of the sale. The court set the reserve price at $2,125,000 and allowed for marketing consistent with industry best practices. The court also mandated that each party have the liberty to bid and provided for the net proceeds of the sale to be paid into court.