Hijazi and Hijazi v Raptis

The case of Hijazi and Hijazi v Raptis involved a dispute between the plaintiffs, Hijazi and Hijazi, and the defendant, Raptis, over the sale of a property in Sydney. The dispute centred on the defendant's failure to disclose the existence of a council policy concerning flood-prone land, which was material to the sale. This omission led to the plaintiffs seeking rescission of the sale contract and the return of their deposit. The case was heard in the Supreme Court of New South Wales.

The primary legal issues that the court had to address were whether the defendant breached the statutory warranties under the Conveyancing Act 1919 and the Conveyancing (Sale of Land) Regulation 2000 by not disclosing the council policy. Specifically, the court needed to determine if this non-disclosure constituted a material defect that justified rescission of the contract and the return of the deposit. Additionally, the court had to consider the implications of the Best Evidence Rule and how it applied to the evidence of the council's resolution regarding flood-prone land.

The court found that the defendant did indeed breach the statutory warranties by failing to disclose the council policy. The non-disclosure of this material fact was deemed significant, as it could potentially affect the plaintiffs' ability to obtain insurance for the property and their future enjoyment of it. The court held that the breach was substantial enough to warrant rescission of the contract and the return of the deposit to the plaintiffs. Furthermore, the court inferred that the council had made the resolution in question, relying on the principle that all public acts are presumed to be properly executed.

The court ordered the rescission of the sale contract between the plaintiffs and the defendant. The deposit paid by the plaintiffs was to be returned to them, along with interest at the legal rate from the date of payment until the date of the judgment. The court did not order any further compensation or damages beyond the return of the deposit and interest.