Sentinel Income Pty Ltd v Santrev Pty Ltd

Sentinel Income Pty Ltd commenced legal proceedings against Santrev Pty Ltd and others, seeking damages for breaches of contract and other related claims arising from the purchase of a farm. The defendants sought to strike out parts of the plaintiff's pleadings, arguing they disclosed no reasonable cause of action or defence. Additionally, the defendants filed a counterclaim alleging breach of trust by the plaintiff's solicitors, which required leave under the Trusts Act 1973 (Qld). The court had to decide whether the plaintiff's claims for the cost of vegetation buffer works and loss of opportunity disclosed a reasonable cause of action and whether the defendants should be granted leave to commence a counterclaim.

The court held that the plaintiff's claims for the cost of performing vegetation buffer works failed to disclose a reasonable cause of action because the plaintiff mischaracterised the effect of certain clauses in the lease agreement. The court also rejected the plaintiff's narrow interpretation of other clauses in the lease agreement. The court further found that the defendants' counterclaim for breach of trust required leave under section 113 of the Trusts Act 1973 (Qld). The court granted the defendants leave to amend their counterclaim accordingly. The plaintiff was granted leave to replead its claims for the cost of vegetation buffer works and loss of opportunity.

The court ordered that specific paragraphs of the plaintiff's pleadings, as well as certain references to "the Buffer Works," be struck out. The plaintiff was granted leave to replead those paragraphs and the words "the Buffer Works" in the chapeau of paragraph 27. Additionally, the plaintiff was allowed to amend its claim for loss of commercial opportunity. The second defendant was granted leave to commence its counterclaim for breach of trust. The defendants' application filed on 25 May 2023 was dismissed, and the court scheduled a hearing on costs.