Leighton Properties Pty Ltd v Kevin Anschau Developments Pty Ltd

Leighton Properties Pty Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales concerning a dispute with Kevin Anschau Developments Pty Ltd (the respondent). The core of the dispute involved a contract for the sale of land, specifically concerning the interpretation of a special condition relating to the respondent's obligation to obtain development approval.

The primary legal issue before the Court of Appeal was whether the respondent had committed a breach of contract by failing to take all reasonable steps to obtain the necessary development approval within the stipulated timeframe. This required the court to consider the nature and extent of the respondent's contractual obligations under the special condition, and whether their actions or inactions amounted to a failure to exercise reasonable diligence in pursuing the approval.

The Court of Appeal found that the special condition imposed a positive obligation on the respondent to take all reasonable steps to obtain development approval. It was held that the respondent had not discharged this obligation, as their efforts to secure the approval were insufficient and fell short of what was reasonably required. The court applied the principle that where a contract requires a party to take all reasonable steps to achieve a particular outcome, that party must demonstrate that they have actively and diligently pursued that outcome, and that any failure to achieve it was not due to their own lack of reasonable effort. The appeal was accordingly dismissed.