Statewide Developments Pty Ltd v Higgins

Statewide Developments Pty Ltd (the appellant) appealed to the Court of Appeal of New South Wales against a decision of the primary judge concerning a contract for the sale of a unit. The dispute arose when the purchaser (the respondent) defaulted under the contract, leading the vendor (the appellant) to terminate. The appellant sought to recover damages, including mortgage interest payments, while the primary judge had also ordered the return of the deposit under section 55(2A) of the *Conveyancing Act 1919* (NSW) due to a misrepresentation by the vendor.

The Court of Appeal was required to determine two principal issues. Firstly, whether the evidence established that the mortgage interest payments claimed by the vendor as damages were caused by the purchaser's breach of contract. Secondly, the Court had to consider whether there was any error in the primary judge's exercise of discretion in ordering the return of the deposit under section 55(2A) of the *Conveyancing Act 1919* (NSW) by reason of the vendor's pre-contractual misrepresentation.

The Court of Appeal dismissed the appeal. It was held that the primary judge had not erred in finding that the vendor had failed to establish that the claimed mortgage interest payments were a consequence of the purchaser's breach. Furthermore, the Court found no error in the primary judge's exercise of discretion to order the return of the deposit, given the finding of misrepresentation. Consequently, the appellant was ordered to pay the respondent's costs of the appeal.