Kevroy P/L v. Keswick Developments P/L; Keswick Developments P/L v Kevroy P/L

In the matters of Kevroy P/L v. Keswick Developments P/L and Keswick Developments P/L v Kevroy P/L, the Queensland Supreme Court was called upon to resolve a dispute involving competing equitable interests in land. The primary issue was whether the plaintiff, Kevroy P/L, had constructive or actual notice of an agreement between the defendant, Keswick Developments P/L, and a third party, which predated Kevroy's own agreement with Keswick. The court was also tasked with determining the effect of the registration of a sublease prior to the head lease, and whether the plaintiff had any real prospects of success in its claims.

The court determined that the first in time principle applied, meaning that the earlier agreement held priority over the plaintiff's subsequent agreement. The court held that Kevroy P/L had express notice of the earlier agreement, which negated any claim to priority on their part. Furthermore, the registration of the sublease before the head lease did not alter the priority of the interests, as the sublease was subordinate to the head lease. The court also found that the plaintiff had no real prospects of success in its claims, and therefore, the orders for summary judgment were appropriate. Consequently, the plaintiff's claims were dismissed, and costs were awarded to the defendant.

In the first matter, the court dismissed the plaintiff's claim against the first defendant and ordered the plaintiff to pay the defendant's costs of and incidental to the action. In the second matter, the court ordered the respondent to pay the applicant's costs of and incidental to the application, including reserved costs, and reserved other costs. This decision underscores the importance of the timing of agreements and the effect of notice on the priority of competing equitable interests in land.