Sutherland v Globe Real Estate Pty Ltd

IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE

COMMON LAW DIVISION
PROFESSIONAL LIABILITY LIST

S CI 2017 03093

MARIKA SUTHERLAND (BY HER LITIGATION GUARDIAN GREGORY JOHN SUTHERLAND)	Plaintiff
v
GLOBE REAL ESTATE PTY LTD (ACN 146 187 224) AND OTHERS (according to the schedule attached)	Defendant

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JUDGE:	Derham AsJ
WHERE HELD:	Melbourne
DATE OF HEARING:	18 July 2018
DATE OF JUDGMENT:	27 July 2018
CASE MAY BE CITED AS:	Sutherland v Globe Real Estate Pty Ltd & Ors
MEDIUM NEUTRAL CITATION:	[2018] VSC 408

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PRACTICE AND PROCEDURE – Costs – Whether successful determination of the plaintiff’s claim on a ground added after the commencement of the proceeding, whilst not proceeding with another ground, is a basis for awarding costs to the defendant for a part of the proceeding or reducing the plaintiff’s costs – Plaintiff’s costs reduced slightly.

PRACTICE AND PROCEDURE – Interest on judgment sum – Claim by successful plaintiff for an entitlement to be paid interest under the Penalty Interest Rates Act 1983 (Vic) – Supreme Court Act 1986 (Vic), s 58 – Whether ‘good cause to the contrary’ shown for not awarding interest on the statutory basis – Whether holding disputed sum in solicitor’s trust account pursuant to agreement until resolution of the dispute a ‘good cause to the contrary’ – Not good cause – Whether interest rate should be reduced because disputed sum held in solicitor’s trust account and bearing no interest to the parties – Interest rate reduced slightly.

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APPEARANCES:	Counsel	Solicitors
For the Plaintiff	Mr D P Lloyd	Sophie Gioutlou & Co
For the Defendant	Mr C Twidale	Marsh & Maher Richmond Bennison

TABLE OF CONTENTS

Introduction......................................................................................................................................... 1

Background......................................................................................................................................... 1

The proceeding................................................................................................................................... 3

Applicable law.................................................................................................................................. 11

Costs.............................................................................................................................................. 11

Interest.......................................................................................................................................... 14

Defendant’s submissions................................................................................................................ 17

Interest.......................................................................................................................................... 18

Costs.............................................................................................................................................. 19

Plaintiff’s submissions.................................................................................................................... 20

Interest.......................................................................................................................................... 20

Costs.............................................................................................................................................. 21

Analysis.............................................................................................................................................. 22

Costs.............................................................................................................................................. 22

Interest.......................................................................................................................................... 24

Conclusion......................................................................................................................................... 28

HIS HONOUR:

Introduction

1. These reasons concern claims by the plaintiff for interest and costs against the defendant in unusual circumstances.

1. On 4 June 2018 the Court made declarations in favour of the plaintiff by consent.  The declarations concerned whether an Exclusive Sale Authority between the plaintiff, as vendor, and the defendant, as agent, complied with requirements set out in the Estate Agents Act 1980 (Vic) (the Act) and whether the defendant was entitled to retain any commission in respect of the sale of the plaintiff’s property at 37 Oak Street Beaumaris (Property).  The Property had been sold by the plaintiff, through the agency of the defendant, to Iconic Property Development Australia Pty Ltd by a contract of sale dated 16 February 2017. 

1. The deposit monies had been retained by the solicitors for the defendant pending resolution of a dispute as to the entitlement of the defendant to commission on the sale of the Property.  In consequence of the decision of the Court of Appeal in Advisory Services Pty Ltd (t/as Ray White St Albans) v Augustin,[1] which was handed down on 19…