President Finance Corporation Pty Ltd & Anor v Reid House Pty Limited

President Finance Corporation Pty Ltd and Miles David Barclay (the appellants) sought special leave to appeal to the High Court of Australia against a decision concerning the assessment of damages. The dispute arose when Reid House Pty Limited (the respondent) occupied space in a building previously occupied by the appellants. This occupation was necessitated by a notice issued under the Local Government Act relating to fire safety. Following this, the respondent converted the building from company title to strata title, which the appellants argued increased the value of all units. The appellants contended that their damages, resulting from the loss of their space, should be assessed on the basis of strata title valuation.

The central legal issue before the High Court was whether the damages awarded to the appellants should be calculated by reference to the value of the property as company title or as strata title. This question was complicated by the fact that the appeal was ostensibly against a Master's assessment of damages, but the underlying order for assessment was made by Needham J, against which no appeal had been lodged. The appellants sought to argue that the assessment of damages, in accordance with Needham J's order, should incorporate the increased value derived from the subsequent conversion to strata title.

The Court considered whether the appellants could establish a question of general public importance justifying special leave. The appellants argued that the respondent had benefited from its own wrong if damages were assessed at the date of breach, before the potential for strata title was realised. They contended that by the time of the damages assessment hearing, the strata plan had been approved, and a valuer would have been entitled to consider this potential. The appellants' argument was that the damages should reflect the value at the time the full potential of strata title had become apparent, rather than at the earlier date of breach when such potential was not yet realised.