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Mehmet v Carter

Mehmet v Carter

Case [2017] NSWSC 1067 16 August 2017

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Supreme Court

New South Wales

Summary available

Medium Neutral Citation: Mehmet v Carter [2017] NSWSC 1067
Hearing dates: 26-27 June 2017
Date of orders: 16 August 2017
Decision date: 16 August 2017
Jurisdiction: Equity
Before: Darke J
Decision:
Separate questions answered favourably to vendor defendants.

Catchwords:
LAND LAW – contract for sale – obligations of vendor – defect in title – where purchaser claimed that Aboriginal objects owned by the Crown constituted a defect in title – whether Aboriginal objects formed part of subject matter of sale – whether Aboriginal objects would give Crown an interest in the subject matter of sale – no defect in title

LAND LAW – contract for sale – completion of contract for sale – vendor’s entitlement to interest – where vendor served notice to complete and settlement figures which included interest for delay in completion – whether completion date had been set – whether vendor repudiated contract for sale by continuing to demand interest – no repudiation established
CONTRACTS – construction and interpretation – principles of construction – whether Aboriginal objects included in subject matter of contract for sale of land – relevance of legislative background to construction of contract – construction of contract to avoid commercially unexpected and inconvenient results – Aboriginal objects not part of subject matter of contract
Legislation Cited: National Parks and Wildlife Act 1967 (NSW), Part IVA ss 33A-33L
National Parks and Wildlife Act 1974 (NSW), Part 6 Div 1 ss 83-89A
National Parks and Wildlife (Amendment) Act 1969 (NSW)
Cases Cited: Abraham v Mallon (1975) 1 BPR 97,012
Borda v Burgess (2003) 11 BPR 21,203; [2003] NSWSC 1171
Carapetta v Rado (2012) 16 BPR 30,997; [2012] NSWCA 202
Country Energy v Williams (2005) 63 NSWLR 699; [2005] NSWCA 318
DCT Projects Pty Ltd v Champion Homes Sales Pty Ltd [2016] NSWCA 117
DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423
Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 343 ALR 58; [2017] HCA 12
Eighth SRJ Pty Ltd v Merity (1997) 7 BPR 97,635 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7
Elwes v Briggs Gas Company (1886) 33 Ch D 562
Fletcher v Manton (1940) 64 CLR 37
Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd (2007) 233 CLR 115; [2007] HCA 61
Stockland Constructors (Pty Ltd) v Carriage (2003) 56 NSWLR 636; [2002] NSWSC 1179
The North Shore Gas Company Ltd v The Commissioner of Stamp Duties (NSW) (1940) 63 CLR 52
Travinto Nominees Pty Ltd v Vlattas (1973) 129 CLR 1
Westfield Management Ltd v AMP Capital Property Nominees Ltd (2012) 247 CLR 129; [2012] HCA 54 Zaps Transport (Aust) Pty Ltd v PJG Warehousing and Distribution Pty Ltd [2016] NSWCA 97
Texts Cited: J W Carter, Contract Law in Australia (LexisNexis Butterworths, Sixth Edition, 2013)
Category: Principal judgment
Parties: Ian Mehmet as trustee for the Ian G Mehmet Testamentary Trust (First Plaintiff/First…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Mehmet v Carter

Details

AGLC: Mehmet v Carter [2017] NSWSC 1067
Case: [2017] NSWSC 1067
Decision Date: 16 August 2017

CaseChat Overview and Summary

In the matter of Mehmet v Carter, the dispute centred around the sale of a property where the purchaser, Mehmet, alleged that the presence of Aboriginal objects, owned by the Crown, constituted a defect in the vendor's title. The case was determined by the Federal Court of Australia. The central legal issue revolved around whether the Aboriginal objects formed part of the subject matter of the sale and, if so, whether their presence would confer an interest on the Crown that could be considered a defect in the vendor's title. Additionally, the case examined the vendor's entitlement to interest for the delay in the completion of the sale, following the service of a notice to complete and settlement figures that included such interest.

The court held that the Aboriginal objects were not part of the subject matter of the sale. The construction of the contract was guided by principles that aimed to avoid commercially unexpected and inconvenient results, taking into account the relevant legislative background. The court found that the presence of the Aboriginal objects did not constitute a defect in the vendor's title as they did not form part of the sale. Furthermore, regarding the entitlement to interest, the court concluded that the vendor had not repudiated the contract by demanding interest for the delay in completion, as there was no evidence that the completion date had been set. Consequently, the vendor was entitled to the interest claimed.

The court's decision underscored the importance of a careful interpretation of contracts, particularly in the context of land sales, to ensure that the terms reflect the actual intentions of the parties. The court's ruling affirmed that the presence of Aboriginal objects did not constitute a defect in the vendor's title and that the vendor was entitled to interest for the delay in completion. The final orders reflected these conclusions, upholding the vendor's right to the specified interest and dismissing the purchaser's claims regarding the alleged defect in title.

Orders