Oates Properties Pty Ltd v Commissioner of State Revenue

In the matter of Oates Properties Pty Ltd and the Commissioner of State Revenue, the dispute centred on the rectification of a deed of appointment of a new trustee, which was alleged to have resulted from a mistake of law. The case was heard in the Supreme Court of Queensland. The central issue before the court was whether a deed of appointment, which failed to irrevocably exclude benefits to the trustees, could be rectified to reflect the parties' common intention.

The court was required to determine whether the principles of rectification in equity could apply in this context, given that the mistake was one of law rather than fact. The court examined the established authorities and found that while rectification is generally not available for mistakes of law, there are exceptions where the mistake has led to a significant disconformity between the common intention of the parties and the terms of the deed. In this instance, the court held that the common intention of the parties was to irrevocably exclude benefits to the trustees, which was not reflected in the deed due to a legal misunderstanding.

The court concluded that the disconformity between the common intention and the deed was substantial enough to warrant rectification. The court granted the application for rectification, thus aligning the deed with the parties' true intentions. This decision effectively nullified the ad valorem stamp duty assessed on the transfers of property to the new trustee, as the rectification rectified the mistake in the deed.