Masaka Holdings Pty Ltd as trustee for Shiv Family Trust v Flaxman

Masaka Holdings Pty Ltd as trustee for the Shiv Family Trust sought an extension of a caveat lodged against a property located in Bondi Junction. The property was the subject of a transaction between the applicant and Flaxman, and the application arose from the failure to complete the sale as agreed. The Federal Circuit Court was called upon to determine whether the applicant had raised a serious question to be tried regarding the extension of the caveat, a matter that hinged on the unique facts of the case.

The legal issues before the court included whether the applicant had established a serious question to be tried and whether the caveator had a bona fide reason for lodging the caveat. The court had to assess whether the applicant’s case was plausible and whether the balance of convenience favoured the continuation of the caveat. Additionally, the court needed to consider the conduct of the parties and the potential prejudice that might arise from either granting or refusing the extension.

In assessing these issues, the court considered the circumstances leading to the lodging of the caveat and the applicant's ability to complete the sale. The court found that the applicant had raised a serious question to be tried, as there were genuine issues regarding the completion of the sale and the potential for a breach of contract. The court also determined that the balance of convenience favoured maintaining the caveat to protect the applicant's interests pending resolution of the underlying dispute. The court concluded that the applicant had demonstrated a bona fide reason for the caveat and granted the extension.

The orders made by the court were that the caveat be extended for a specified period to allow for the resolution of the underlying issues. The court directed the parties to engage in mediation to attempt to resolve the dispute and ordered that further updates be provided regarding the progress of the sale. The court also set a date for a further hearing to review the status of the transaction and the need for any further extensions.