Makita (Australia) Pty Ltd v Sprowles

In Makita (Australia) Pty Ltd v Sprowles, the appeal concerned a dispute between purchasers, Makita (Australia) Pty Ltd, and a vendor regarding the termination of a contract for sale. The case was heard in the Court of Appeal of New South Wales before Beazley, Campbell, and Young JJA.

The primary legal issue before the Court of Appeal was whether the contract of sale had been validly terminated by the purchasers. A subsidiary issue related to the award of costs, specifically whether full costs should be awarded on appeal when the success was based on a point that was secondary to the main argument presented at trial.

The Court of Appeal allowed the appeal, finding that the contract had been validly terminated by the purchasers. The court reasoned that the purchasers were entitled to terminate the contract and recover their deposit. In relation to costs, the court ordered that the vendor pay the purchasers' costs of the proceedings and the appeal in full, despite the purchasers' success on a subsidiary point. The court also made various orders concerning the costs between the first respondent (vendor) and the second respondent, and dismissed a cross-claim by the vendor against the purchasers.