Hornsby Shire Council v Henlong Property Group Pty Ltd (No 2)

In this matter, Hornsby Shire Council sought to enforce a development approval against Henlong Property Group Pty Ltd. The dispute arose out of an alleged agreement between the parties concerning the development of a property in Hornsby. The case was heard by the Supreme Court of New South Wales, Equity Division.

The court had to decide whether there was a binding contract between the parties, and if so, whether the terms of the contract required the Council to grant a development approval to the Respondent. The Council argued that there was no binding contract, or if there was one, it did not obligate them to grant the development approval. The Respondent, on the other hand, argued that there was a binding contract and that it entitled them to the approval.

The court found that there was a binding contract between the parties, which was formed when the Council gave the Respondent a verbal assurance that a development approval would be granted if certain conditions were met. The court held that this assurance constituted a collateral contract, separate from the main agreement, which imposed an obligation on the Council to act in good faith and grant the approval. However, the court also found that the Council had acted in accordance with its obligations under the collateral contract and had not acted in bad faith. As a result, the Respondent's claim for specific performance of the contract was dismissed.

The court ordered that the claim for specific performance be dismissed and that each party bear their own costs of the proceeding.