Pindan Pty Ltd v Sunny's Redevelopment Pty Ltd

The case of Pindan Pty Ltd v Sunny's Redevelopment Pty Ltd, heard by Murray J in the Supreme Court of Western Australia, concerns a dispute over a caveat lodged by Pindan Pty Ltd over certain strata lots. The dispute revolves around the balance of convenience and the maintenance of a secured fund. Pindan, the plaintiff, lodged a caveat over the land to prevent dealing in the land absolutely, as it had a caveatable interest under the building contract with Sunny's Redevelopment Pty Ltd, the defendant. The dispute between the parties is over the amount of money owed under the compromise agreement made between the parties. The court was required to decide whether the caveat should be extended pending the resolution of the dispute and whether the balance of convenience favoured the removal of the caveat, conditional upon the establishment of a fund to secure the disputed sum.

The court held that the demonstration of a caveatable interest would ordinarily secure the extension of the operation of the caveat unless it appeared to be clear that it could be removed without sacrificing the security provided by the caveat. In this case, the court found that the creation of a special trust account, as proposed by the defendant, would provide adequate security as an alternative to reliance upon the charge under the building contract. Therefore, the court decided to extend the operation of the caveat until the fund was established. Upon presentation of evidence to that effect to the second defendant, the caveat could be discharged in respect of the whole of the land presently covered.