McIntosh v Linke Nominees Pty Ltd

McIntosh v Linke Nominees Pty Ltd involved a dispute between the appellant, who was the director of the company Linke Nominees Pty Ltd, and the respondents. The central issue was whether the appellant was liable for breach of warranty of authority and the appropriate assessment of damages. The respondents had agreed to relinquish their rights to bring proceedings against the company in exchange for a settlement sum, which was to be 50% of the property's value. They subsequently sued the appellant for $500,000 plus interest due to a breach of the warranty of authority. The respondents' rights against the company remained unaddressed, and the land's value was not considered in the damages assessment.

The legal issues encompassed the liability of the agent for breach of warranty of authority and the proper calculation of damages. The court needed to determine if the appellant's liability was correctly assessed and whether the respondents' remedies in relation to the land should have been considered. Additionally, the court examined whether the appellant's obligations under the deed were contingent on the company's duty to pay the settlement sum, given that the company was not a party to the deed.

The court found that the respondents' rights against the company should have been considered in the damages assessment. It also ruled that the respondents' prospects of success and the land's value were not adequately accounted for. Regarding the deed, the court concluded that the appellant's obligations were not contingent upon the company's duty to pay the settlement sum, as the company was not a party to the deed. Consequently, the court allowed the appeals, set aside the previous orders, and ordered the respondents to pay the appellant's costs.