James Legal Pty Ltd v Milanos and Anor (No.2)

James Legal Pty Ltd (the applicant) sought an order for the removal of caveats lodged by Milanos and Anor (the respondents) over two parcels of land. The applicant claimed that the respondents had no caveatable interest in the land, arguing that the caveats were lodged without reasonable cause and were vexatious and frivolous. The application was heard in the Supreme Court of Queensland.

The central legal issue before the Court was whether the respondents possessed a caveatable interest in the land sufficient to justify the continued existence of the caveats. This required the Court to determine if the respondents had established a *prima facie* case of a proprietary interest in the land, or if the caveats were lodged for an improper purpose or without reasonable grounds, thereby warranting their removal.

Judge Nicholls found that the respondents had failed to demonstrate a *prima facie* proprietary interest in the land. The Court noted that the respondents' claims were based on alleged breaches of contract and fiduciary duties, which, even if proven, would give rise to personal claims rather than proprietary rights. The Court reiterated the principle that a caveator must establish a serious question to be tried regarding their asserted proprietary interest. As no such interest was demonstrated, the Court concluded that the caveats were improperly lodged.

Consequently, the Court ordered the removal of the caveats lodged by the respondents over the two parcels of land.