Modi & Clements v SDW Projects Pty Ltd

Case [2013] QCA 221


SUPREME COURT OF QUEENSLAND

CITATION:

Modi & Clements v SDW Projects Pty Ltd & Ors [2013] QCA 221

PARTIES:

In Appeal No 268 of 2013:
SANJU MODI
(appellant)
v
SDW PROJECTS PTY LTD (SUBJECT TO A DEED OF COMPANY ARRANGEMENT)
ACN 110 335 923
(first respondent)
LISA JANE CLEMENTS
(second respondent)
HOLDING REDLICH (A FIRM)
(third respondent)
THOMAS BRADLEY
(fourth respondent)

In Appeal No 233 of 2013:
LISA JANE CLEMENTS
(appellant)
v
SDW PROJECTS PTY LTD (SUBJECT TO A DEED OF COMPANY ARRANGEMENT)
ACN 110 335 923
(first respondent)
SANJU MODI
(second respondent)
HOLDING REDLICH (A FIRM)
(third respondent)
THOMAS BRADLEY
(fourth respondent)

FILE NO/S:

Appeal No 233 of 2013
Appeal No 268 of 2013
SC No 10460 of 2012

DIVISION:

Court of Appeal

PROCEEDING:

General Civil Appeals

ORIGINATING COURT:

Supreme Court at Brisbane

DELIVERED ON:

9 August 2013

DELIVERED AT:

Brisbane

HEARING DATE:

16 May 2013

JUDGES:

Holmes and Gotterson JJA and Boddice J
Separate reasons for judgment of each member of the Court, each concurring as to the orders made

ORDERS:

Appeals dismissed with costs.

CATCHWORDS:

CONVEYANCING – STATUTORY OBLIGATIONS OR RESTRICTIONS RELATING TO CONTRACT FOR SALE – PROTECTION OF PURCHASERS – OBLIGATIONS ON VENDOR: DISCLOSURE, WARNING AND LIKE MATTERS – where the appellants were solicitors retained by the first respondent to assist in conveying units in a proposed development – where buyers under the contracts of sale withdrew their offers to purchase, arguing that they were not bound because of non-compliance with s 365(2A)(c)(ii) of the Property Agents and Motor Dealers Act 2000 – where the first respondent obtained a declaration that letters sent by the appellants to the buyers’ solicitors, returning executed contracts with warning statements and information sheets, did not direct the buyers' attention to the warning and information sheet, as required by s 365(2A)(c)(ii) – whether reference in the letters to the “Contract of Sale” could be regarded as encompassing the warning statement and information sheet – whether the context in which the letters were received or the form of the documents obviated the need to make specific reference to the relevant documents – whether the letters met the requirements of s 365(2A)(c)(ii)

Property Agents and Motor Dealers Act 2000 (Qld), s 10, s 363, s 364, s 365, s 366, s 366A, s 366B

Beckwith v The Queen (1976) 135 CLR 569; [1976] HCA 55, cited
Boylan v Gallagher [2012] 1 Qd R 420; [2011] QCA 240, considered
Day & Dent Constructions Pty Ltd v North Australian Properties Pty Ltd (1982) 150 CLR 85; [1982] HCA 20, cited
Hedley Commercial Property Services Pty ltd v BRCP Oasis Land Pty Ltd [2008] QSC 261, considered
MNM Developments Pty Ltd v Gerrard [2005] 2 Qd R 515; [2005] QCA 230, considered
SDW Projects Pty Ltd v Modi & Ors [2012] QSC 400, related

COUNSEL:

R J Anderson for the appellant/second respondent, Clements
D Clothier QC, with R Jackson, for the appellant/second respondent, Modi
D Kelly QC, with…

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Details
AGLC
Modi & Clements v SDW Projects Pty Ltd & Ors [2013] QCA 221
Case
[2013] QCA 221
Decision Date

CaseChat Overview and Summary

The appeal before the court involved Modi & Clements, acting as solicitors, and SDW Projects Pty Ltd, a property developer. The dispute centred around the sale of units in a proposed development. The buyers had withdrawn their offers to purchase, claiming non-compliance with s 365(2A)(c)(ii) of the Property Agents and Motor Dealers Act 2000. This section requires vendors to ensure that the contract of sale is accompanied by a warning statement and information sheet. The first respondent sought a declaration that the letters sent by the appellants to the buyers’ solicitors, returning executed contracts with warning statements and information sheets, did not specifically direct the buyers' attention to the warning and information sheet as required by the statutory provision.

The primary legal issue was whether the reference in the letters to the “Contract of Sale” could be considered sufficient to encompass the warning statement and information sheet. Additionally, the court needed to determine whether the context in which the letters were received or the form of the documents obviated the need for specific reference to the relevant documents, and if the letters met the requirements of s 365(2A)(c)(ii).

The court found that the letters did not sufficiently direct the buyers’ attention to the warning and information sheet. The reference to the “Contract of Sale” was not deemed to encompass the warning statement and information sheet. The court held that the context and form of the documents did not eliminate the need for a specific reference to the relevant documents. Consequently, the letters did not comply with the statutory requirement, leading to the buyers' entitlement to withdraw from the contracts of sale. The appeals were dismissed with costs.

Orders

Orders of the court

Appeals dismissed with costs.

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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