DISTRICT COURT OF QUEENSLAND
CITATION: MNM Developments Pty Ltd v Gerrard [2005] QDC 010
PARTIES: MNM DEVELOPMENTS PTY LTD
Applicant
and
WILLIAM ALAN GERRARD
Respondent
FILE NO: 404/04 PROCEEDING: Application ORIGINATING COURT: District Court Southport
DELIVERED ON: 4 February 2005 DELIVERED AT: Southport HEARING DATE: 31 January 2005 JUDGE: Newton DCJ ORDER: Application dismissed CATCHWORDS: CONTRACT – TERMINATION – alleged breach of the Property Agents and Motor Dealers Act 2000 – construction of the Act – where application seeks declaration that contract for sale of land validly terminated by notice – whether a warning statement was attached to contract – meaning of “attached”
Property Agents and Motor Dealers Act 2000
Uniform Civil Procedure RulesCases cited:
MP Management (Aust) Pty Ltd v Churven & Anor [2002] QSC 320
Sidbent Pty Ltd & Anor v Reinisch [2003] QSC 203COUNSEL: Mr P Hackett – applicant
Mr L Jurth - respondentSOLICITORS: Schultz Toomey O’Brien – applicant
Short Punch & Greatorix – respondent
The applicant plaintiff seeks summary judgment of its claim and related orders pursuant to r 292 of the Uniform Civil Procedure Rules. More particularly, the applicant seeks the following orders:
(a)a declaration that the plaintiff has validly terminated a contract dated 10 June 2003 for the purchase of a residential property at 18 Sunset Boulevard, Surfers Paradise, described as Lot 16, RP 81255, Parish of Gilston;
(b)an order that the defendant refund the deposit in the sum of $62,500 paid under the contract, together with any accretions thereon to the plaintiff;
(c)a declaration that the defendant’s purported termination of the contract on 19 March 2004 was unlawful; and
(d)an order that the counterclaim be dismissed.
The facts and relevant chronology are not in dispute. The following summary of facts is taken from the very helpful written submissions of both counsel who appeared at the hearing of the application. In May 2003, the defendant agreed to sell, and the plaintiff agreed to purchase, a residential property at Surfers Paradise, situated at 18 Sunset Boulevard [“the Property”].
The following documents in the following order were sent by facsimile transmission on 26 May 2003 at 16:30 hours by the defendant’s agent, 2C Property, to Dr McGovern, a director of the plaintiff:
(a)facsimile transmission cover sheet/covering letter;
(b)Property Agents and Motor Dealers Act (“PAMD”) Form 27b (Selling Agent’s Disclosure to Buyer) (“the Disclosure Statement”);
(c)PAMD Form 30c (Warning Statement) (“the Warning Statement”); and
(d)REIQ Contract for Houses and Land (“the Contract”).
On the same day, McGovern executed the Disclosure Statement, the Warning Statement and the Contract in that order, being the same order in which they were transmitted. It may be inferred that they were received in the same order.
By return facsimile transmission on the same day at 17:50 hours, McGovern sent the executed copies of the Disclosure Statement, the Warning Statement and the Contract (in that order) to 2C Property.
On or about 2 June 2003, 2C Property received from McGovern, and forwarded to the defendant’s solicitor, the original…
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- AGLC
- MNM Developments Pty Ltd v Gerrard [2005] QDC 10
- Case
- [2005] QDC 10
- Decision Date
CaseChat Overview and Summary
The central legal issue was whether the warning statement had to be physically attached to the contract for it to comply with the Property Agents and Motor Dealers Act 2000, or if it was sufficient for the statement to be included within the contract. The court needed to construe the meaning of "attached" as used in the Act to resolve this dispute. MNM Developments argued that the warning statement must be physically attached to the contract, while Gerrard contended that inclusion within the contract was sufficient.
The court found that the warning statement did not need to be physically attached to the contract to be considered "attached" within the meaning of the Act. The court held that the inclusion of the statement within the contract was sufficient to satisfy the requirements of the Act. The court further found that, because the contract did not comply with the Act, it was validly terminated. However, the court dismissed MNM Developments' application for a declaration that the contract was validly terminated, as the application was considered premature.
Orders
Orders of the court
Application dismissed
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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