Nicholson v Hilldove Pty Ltd (No 4)

Link copied
Case Copied 22 min read
IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE

COMMERCIAL AND EQUITY DIVISION

COMMERCIAL COURT

No. S CI 2013 2198

BETWEEN

JOHN DAVID NICHOLSON Plaintiff
and
HILLDOVE PTY LTD (ACN 114 760 771) First Defendant
and
TERRABRIDGE PTY LTD (ACN 115 615 097) Second Defendant
and
BENJAMIN PATRICK NIALL Third Defendant

---

JUDGE:

SIFRIS J

WHERE HELD:

Melbourne

DATE OF HEARING:

18 October 2013

DATE OF JUDGMENT:

25 October 2013

CASE MAY BE CITED AS:

Nicholson v Hilldove Pty Ltd & Ors (No 4)

MEDIUM NEUTRAL CITATION:

[2013] VSC 578

---

CONTRACT – Repudiation – No loss or damage established – Nominal damages awarded.

COSTS – Pyrrhic victory – Nominal damages – Trial in stages – Whether plaintiff should recover costs of liability stage of trial – Plaintiff succeeded on critical issue but later failed to establish any loss or damage – Whether and to what extent plaintiff should pay defendants’ costs.

COSTS – Calderbank and other offers – Reasonableness of offers – Failure to accept not unreasonable. 

---

APPEARANCES:

Counsel Solicitors
For the Plaintiff Dr K Hanscombe SC
Ms K Bowshell
Williams Winter Solicitors
For the Defendants Mr T Woodward SC
Mr J Mereine
Minter Ellison

HIS HONOUR:

Introduction

  1. On 14 December 2012 I published my reasons for concluding that the plaintiff (‘Nicholson’) had entered into a binding and enforceable agreement (‘the Agreement’) with the first defendant (‘Hilldove’) on 15 December 2011 in relation to the purchase by Nicholson of the Crown Hotel in Lilydale from Hilldove.[1]

  1. The Agreement contemplated a ten year lease (with three further options of ten years each) at a starting rental of $680,000 per annum with market reviews.  The landlord, Terrabridge Pty Ltd (‘Terrabridge’), the second defendant in this proceeding, was not a party to the Agreement.  It was not suggested by Nicholson that there was any obligation on the part of Terrabridge (whether promissory or representational) to grant a lease on the terms contemplated or at all.  Rather, it was pleaded and submitted that there was an implied term of the Agreement that Hilldove, as a party related to Terrabridge, would procure the contemplated lease.  It was further alleged that Hilldove had made representations to such effect.

  1. It was held that there was no such implied term and that Hilldove had not made any representations to the effect alleged. [2]

    [2]Ibid [127], [133]-[135].

  1. In the final analysis the Agreement was subject to the execution of a lease on the terms contemplated.  However there was no obligation on the part of Terrabridge or Hilldove to grant or procure such a lease.  It was a matter for negotiation between the parties.  Clearly Nicholson lost the opportunity to negotiate such a lease. Without a lease he would not have gone ahead with the purchase of the Crown Hotel.

  1. On 7 May 2013 I dismissed an application by Nicholson to re-open the case on the grounds that there was evidence of an…

CaseChat AU logo

Keep reading for free

Create a free CaseChat account to read Nicholson v Hilldove Pty Ltd (No 4) and more:

  • Read every judgment in full
  • Ask AI and get answers linked to paragraphs
  • See how each paragraph was cited in later cases
  • Download judgments as PDF or Word
Continue with Google

One click creates your free account or signs you in.

By continuing you agree to the Terms and Privacy Policy.

Details
Case
[2013] VSC 578
Decision Date

CaseChat Overview and Summary

Nicholson v Hilldove Pty Ltd (No 4) involved a dispute between the parties over a contract, with the central issue being the consequences of a repudiation of the contract and the associated damages. The matter was heard in the Federal Court of Australia. The plaintiff, Nicholson, alleged that the defendant, Hilldove Pty Ltd, repudiated a contract, and sought damages for that repudiation. The defendants denied the repudiation and, even if it occurred, denied any loss or damage resulting from it.

The court had to determine whether the plaintiff had established that the defendant repudiated the contract and, if so, whether the plaintiff had suffered any loss or damage as a result of that repudiation. The court found that the plaintiff did establish that the defendant repudiated the contract, but the plaintiff failed to prove any loss or damage resulting from that repudiation. The court awarded the plaintiff nominal damages for the repudiation. Regarding costs, the court considered the plaintiff's success in establishing the repudiation against their failure to prove any loss or damage. The court also examined the reasonableness of settlement offers made by the parties during the trial. Ultimately, the court ruled that the plaintiff should not recover the costs of the liability stage of the trial and should pay the defendants' costs to a certain extent.

The final orders of the court were that the plaintiff was awarded nominal damages for the repudiation of the contract. The plaintiff was ordered to pay the defendants' costs of the liability stage of the trial up to a specified amount and the costs of the damages stage in full. The court's decision highlighted the importance of establishing loss or damage resulting from a repudiation and the consequences of failing to do so in terms of costs recovery.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.