Lockyer Land Plans Pty Ltd v Metcoal Trading Pty Ltd

Case [2021] QSC 138


SUPREME COURT OF QUEENSLAND

CITATION:

Lockyer Land Plans Pty Ltd v Metcoal Trading Pty Ltd & Anor [2021] QSC 138

PARTIES:

LOCKYER LAND PLANS PTY LTD
ACN 629 791 288

(plaintiff)

v
METCOAL TRADING PTY LTD
ACN 630 562 800

(first defendant)

JAMES CHRISTOPER HAKOS

(second defendant)

FILE NO/S:

BS 10672 of 2019

DIVISION:

Trial Division

PROCEEDING:

Trial

ORIGINATING COURT:

Supreme Court at Brisbane

DELIVERED ON:

11 June 2021

DELIVERED AT:

Brisbane

HEARING DATES:

7 June 2021; 8 June 2021

JUDGE:

Freeburn J

ORDERS:

1.    Order for specific performance as per the initialled draft supplied by the plaintiff.

2.    Parties to be heard on costs.

CATCHWORDS:

CONTRACTS – GENERAL CONTRACTUAL PRINCIPLES – DISCHARGE, BREACH AND DEFENCES TO ACTION FOR BREACH – PEFORMANCE – where plaintiff agreed to sell land to first defendant – where first defendant purported to terminate the contract for breach of a confidentiality clause – where plaintiff sues defendants for wrongful termination of the contract and seeks specific performance – where defendants allege plaintiff was not ready, willing and able to perform the contract due to a mortgage over the property – whether plaintiff ready, willing and able to perform the contract

CONTRACTS – GENERAL CONTRACTUAL PRINCIPLES – DISCHARGE, BREACH AND DEFENCES TO ACTION FOR BREACH – CONDITIONS – where plaintiff agreed to sell land to first defendant – where first defendant purported to terminate the contract for breach of a confidentiality clause – where plaintiff sues defendants for wrongful termination of the contract and seeks specific performance – whether first defendant validly terminated the contract due to breach by plaintiff of confidentiality provision in the contract – whether disclosures were made by employees or representatives of the plaintiff

Dare v Pulham (1982) 148 CLR 658
Mehmet v Benson (1965) 113 CLR 295
Orlicki v Brisbane City Council [1961] Qd R 546
Stewart v Kennedy (1890) 15 App Cas 75

Vlasic v Federal Capital Press of Australia Pty Ltd (1976) 9 ACTR 1

COUNSEL:

T Pincus with T Ritchie for the plaintiff

The second defendant appeared on his own behalf and for the first defendant

SOLICITORS:

McCullough Robertson for the plaintiff

The second defendant appeared on his own behalf and for the first defendant

  1. By a contract dated 20 June 2019 the plaintiff, Lockyer Land Plans Pty Ltd (‘Lockyer’), agreed to sell a vacant block of vacant land[1] to the first defendant, Metcoal Trading Pty Ltd (‘Metcoal’) for $11,000,000. Just prior to the settlement of the contract, Metcoal’s solicitors wrote to Lockyer’s solicitors purporting to terminate the contract. Lockyer sues Metcoal seeking for specific performance of the contract. Metcoal argues that the contract was validly terminated because Lockyer breached a confidentiality clause in the contract.

    [1]The land is at Lot 952 Bruce Highway, Bowen.

  2. The second defendant, Mr Hakos, is sued because he guaranteed Metcoal’s obligations under the contract.  The guarantee is dated 26 June 2019.

  3. There are only two issues raised in the pleadings.  The first is whether Lockyer was ready, willing and able to perform…

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Details
AGLC
Lockyer Land Plans Pty Ltd v Metcoal Trading Pty Ltd [2021] QSC 138
Case
[2021] QSC 138
Decision Date

CaseChat Overview and Summary

Lockyer Land Plans Pty Ltd (the plaintiff) brought proceedings against Metcoal Trading Pty Ltd (the first defendant) and others, seeking specific performance of a contract for the sale of land. The dispute arose when the first defendant purported to terminate the contract for breach of a confidentiality clause. The plaintiff sought an order for specific performance, claiming the termination was wrongful. The first defendant argued that the plaintiff was not ready, willing, and able to perform the contract due to a mortgage over the property. The court was tasked with determining whether the first defendant validly terminated the contract for breach of the confidentiality provision and whether the disclosures were made by employees or representatives of the plaintiff.

The central issue before the court was whether the first defendant validly terminated the contract due to the plaintiff's alleged breach of the confidentiality provision. The court had to ascertain whether the breach was material and whether the first defendant's termination was justified. Additionally, the court needed to determine if the plaintiff was ready, willing, and able to perform the contract, particularly in light of the mortgage over the property. The court also needed to consider the nature of the disclosures and whether they were made by the plaintiff's employees or representatives.

In resolving the issues, the court examined the terms of the contract, the nature of the breach, and the consequences of the breach. The court found that the first defendant did not validly terminate the contract due to the plaintiff's breach of the confidentiality provision. The court also concluded that the plaintiff was ready, willing, and able to perform the contract despite the mortgage over the property. The court held that the first defendant's termination was wrongful and ordered specific performance of the contract as per the initialled draft supplied by the plaintiff. The court reserved costs for further consideration.

The court ordered specific performance of the contract as per the initialled draft supplied by the plaintiff. The parties were to be heard on the issue of costs.

Orders

Orders of the court

1. Order for specific performance as per the initialled draft supplied by the plaintiff.

2. Parties to be heard on 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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