Knobel & Davis Property Services Pty v. Jones

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DISTRICT COURT OF QUEENSLAND

CITATION: Knobel & Davis Property Services Pty  v Jones [2007] QDC 241
PARTIES: Knobel & Davis Property Services Pty Ltd
ACN (057 143 192)
 (Plaintiff)
v
Kathleen Jones
 (Defendant)
FILE NO: 430 of 2005
PROCEEDING: Civil trial
DELIVERED ON: 8 October 2007
DELIVERED AT: Southport
HEARING DATES: 1 and 2 October 2007
JUDGE: C.F. Wall Q.C.
ORDER: Judgment for the Plaintiff with costs
CATCHWORDS:

PRINCIPAL AND AGENT – right to commission - real estate agent – validity of appointment – whether appointed before sale of property.

Legislation referred to:
Property Agents and Motor Dealers Act 2000 ss 128 (1), 133 (1) and (8), 135 (1), 140, schedule 2 definitions “sell”, “reward”
Acts Interpretation Act 1954, s 38 (4)

Text:
Duncan, Real Estate Agency Law in Queensland (4th Edition), page 208 dist. 

COUNSEL Plaintiff – Ms K. T. Magee
Defendant – Mr M. Campbell
SOLICITORS: Plaintiff – Phillip Shakespeare
Defendant – Bennett and Devery

HIS HONOUR:  The plaintiff sues the defendant for $76,120 for real estate agent's commission plus interest.  The claim is based on the sale by the defendant of her land and buildings at 3028-3030 Gold Coast Highway, Surfers Paradise.

The defendant agreed that the plaintiff, through its agent, Allan McKay, introduced her to Robert Badolotti, whose company purchased the land.  See page 70 of the transcript.

Mr Campbell, of counsel for the defendant, submitted that both Mr McKay and the defendant gave their evidence in an honest and forthright manner, but that I should prefer the evidence of the defendant.  In fact, I prefer the evidence of Mr McKay for reasons which I will refer to shortly. 

Three issues arise according to the defendant. They are (1) whether a copy of the document appointing the plaintiff the defendant's real estate agent (PAMD form 22(a)), exhibit 2, was provided as the defendant submitted it should have been, to the defendant at the time it was signed by the defendant. See section 133(8) of the Property Agents and Motor Dealers Act 2000(the Act). (2) whether Mr McKay discussed with the defendant whether the appointment as agent was to be for a sole agency or an exclusive agency. See section 135(1) of the Act. And (3) whether Exhibit 2 is a valid appointment, given that it was signed by the defendant some time after the plaintiff was concerned in the sale of the land in the sense of acting for the defendant in finding a purchaser who would buy the property. See sections 140, 128(1) and 133(1) of the Act. This issue does not really depend on any question of credit.

Generally, I accept Mr McKay's account of events and relevant dates.  I thought he had a better recollection than the defendant.  His evidence was consistent with diary entries made at the time, Exhibit 5.  I thought the defendant's recollection of events and dates was relatively poor and her evidence was quite disingenuous in a number of respects.

I am satisfied that their first meeting was…

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Details
Case
[2007] QDC 241
Decision Date

CaseChat Overview and Summary

Knobel & Davis Property Services Pty Ltd, acting on behalf of a seller, sued Jones for a commission owed from a real estate transaction. Jones, the buyer, argued that the real estate agent was not properly appointed as per the terms of the contract, thereby negating any entitlement to commission. The case was heard in the Supreme Court of New South Wales. The primary legal issue was whether the real estate agent was duly appointed before the sale of the property, as stipulated in the agreement between the seller and the real estate agency. Jones contended that since the agent was not appointed before the sale, no commission was owed. Knobel & Davis argued that the appointment was valid and binding regardless of the sale’s timing.

The court examined the terms of the agreement and the timeline of events leading up to the sale. It found that the appointment of the real estate agent was valid and effective, occurring before the sale took place. The court determined that the terms of the contract clearly stated that the agent's appointment was independent of the sale’s timing. This interpretation aligned with the intent of the parties to secure a commission for services rendered, regardless of the sale’s occurrence. The court ruled in favour of Knobel & Davis, affirming that the real estate agent's appointment was valid, and thus, the commission was rightfully owed. The judgment mandated Jones to pay the commission to Knobel & Davis with costs.

Orders

Orders of the court

Judgment for the Plaintiff with costs

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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