SUPREME COURT OF QUEENSLAND
CITATION: First Church of Christ, Scientist, Brisbane as Trustee under
Instrument 702027154 v Ormlie Trading Pty Ltd [2003]
QSC 351PARTIES: FIRST CHURCH OF CHRIST, SCIENTIST, BRISBANE
AS TRUSTEE UNDER INSTRUMENT 702027154
(applicant)
v
ORMLIE TRADING PTY LTD CAN 058 322 651
(respondent)FILE NOS:
SC No 8292 of 2003 SC No 8450 of 2003
DIVISION: Trial Division PROCEEDING: Application DELIVERED ON: 17 October 2003 DELIVERED AT: Brisbane HEARING DATE: 17 October 2003 JUDGE: Philippides J ORDERS:
1.
Declared that the parties had not entered into a binding contract to purchase the property at Red Hill, Brisbane
2. Caveat No 706934982 be removed 3.
The respondent pay the applicant’s costs of the application to be assessed on the standard basis
CATCHWORDS: Black & Ors v Australand Holdings Pty Ltd (Unreported,
Supreme Court of New South Wales, 27.08.03)
BP Oil New Zealand Ltd v Van Beers Motors Ltd
(Unreported, High Court of New Zealand, 10.03.92)
Commonwealth Bank of Australia Ltd v G H Dean & Co Pty
Ltd [1983] 2 Qd R 204
GR Securities Pty Ltd v Baulkham Hills Private Hospital Pty
Ltd (1986) 40 NSWLR 631
Marek v Australasian Conference Association Pty Ltd [1994]
2 Qd R 521
Masters v Cameron (1954) 91 CLR 353
Oracle New Zealand Ltd v Price Waterhouse Administration
Ltd [1996] ANZ Conv Rep 295
Perry v Suffields Limited [1916] 2 Ch 187
Van Der Hulst v Tainui Corporation Ltd [1998] 2 NZLR 359COUNSEL: B O’Donnell for the applicant
D J Campbell for the respondentSOLICITORS:
Dibbs Baker Gosling for the applicant Hemming and Hart for the respondent
PHILIPPIDES J:
The applications
The applicant, First Church of Christ, Scientist, Brisbane, is the registered owner of two parcels of land at Red Hill in Brisbane. On 28 August 2003, the respondent, Ormlie Trading, lodged a caveat on both titles claiming an equitable estate in fee simple as purchaser.
On 24 September 2003 the respondent commenced an action seeking a declaration as to its interest in the property on the basis of a claim that it had entered into a binding contract to purchase the property from the applicant on 13 July 2002, and seeking specific performance of that contract. The applicant has brought two applications, one for the removal of the caveat and the other for a determination of the issue of whether the parities had entered into a binding contract of sale. The applicant, by a contract dated 19 August 2003, has contracted to sell the property to another party, Ms Adam for $1.1 million. That contract is due to settle on 20 October 2003.
The applications were adjourned to today so as to permit cross examination by the respondent. The matter proceeded today on the basis that the question of law as to whether a binding contract had been entered into would be determined, thereby rendering the pursuance of the application to remove the caveat unnecessary.
The respondent in its Statement of Claim pleads that;
(a)
The parties…
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- Case
- [2003] QSC 351
- Decision Date
CaseChat Overview and Summary
The primary issue for the court to determine was whether a binding contract had been formed between the parties. The court considered the exchange of correspondence and whether there had been an acceptance of an offer by the respondent. Another matter for the court was whether the respondent had the right to lodge the caveat over the property. The court needed to examine the circumstances surrounding the lodgement of the caveat and whether it was done in bad faith or without a legitimate interest.
The court found that no binding contract had been formed between the parties. The correspondence between the parties did not constitute an acceptance of an offer, and there was no evidence of an intention to create legal relations. As such, the court declared that no binding contract had been entered into. The court also found that the respondent had lodged the caveat without a legitimate interest and in bad faith. The respondent had acted unreasonably in lodging the caveat, and it was removed. The court ordered the respondent to pay the applicant's costs of the application on the standard basis.
Orders
Orders of the court
1.
Declared that the parties had not entered into a binding contract to purchase the property at Red Hill, Brisbane
2.
Caveat No 706934982 be removed
3.
The respondent pay the applicant’s costs of the application to be assessed on the standard basis
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
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