T J Board & Sons Pty Ltd v B & G Pollard Pty Ltd

In the case of T J Board & Sons Pty Ltd versus B & G Pollard Pty Ltd, the dispute centred around the obligation of an estate agent to disclose that commission rates were negotiable. The matter was heard in the Supreme Court of New South Wales. T J Board & Sons Pty Ltd, the plaintiff, claimed that the defendant, B & G Pollard Pty Ltd, an estate agency, failed to inform them that the commission rates were negotiable. The plaintiff argued that had they known the commission was negotiable, they would have negotiated a lower rate, which would have resulted in a lower overall cost.

The legal issues before the court were whether the estate agent had a duty to inform the client that the commission rates were negotiable and, if so, what was the appropriate method for such disclosure. The court needed to determine whether the estate agent's conduct fell short of the standard of care expected in their professional dealings. Specifically, the court examined whether the estate agent was required to actively inform the client about the negotiability of the commission and whether a passive approach, such as including such information in a general terms and conditions document, was sufficient.

The court found that there was indeed an obligation on the estate agent to inform the client that the commission rates were negotiable. It held that the estate agent should have actively communicated this fact to the client, rather than relying on a passive method such as including it in a document that was not specifically drawn to the client's attention. The court concluded that the estate agent's failure to adequately inform the client about the negotiability of the commission constituted a breach of their professional obligations. Consequently, the court ruled in favour of the plaintiff.

The final orders of the court included a determination that B & G Pollard Pty Ltd was liable for the additional commission that would have been negotiated had the negotiability been properly disclosed. The court awarded damages to T J Board & Sons Pty Ltd for the difference in commission that would have resulted from proper disclosure and negotiation.