Wardy v Hardy

Case [2002] NSWCA 215


Reported Decision:

(2003) NSW ConvR 56-034

New South Wales


Court of Appeal

CITATION: WARDY v HARDY & ANOR [2002] NSWCA 215
FILE NUMBER(S): CA 40044/02
HEARING DATE(S): 5 June 2002
JUDGMENT DATE:
5 July 2002

PARTIES :


Edmond WARDY v Gavin HARDY & Anor
JUDGMENT OF: Mason P at 1; Giles JA at 86; Ipp AJA at 87
LOWER COURT JURISDICTION : Supreme Court - Equity Division
LOWER COURT
FILE NUMBER(S) :
ED 3936/00
LOWER COURT
JUDICIAL OFFICER :
Bryson J
COUNSEL: Appellant: J Graves SC/ I Khan
Respondent: S Rares SC/ R Kaye
SOLICITORS: Appellant: Hunt & Hunt
Respondent: Deacons
CATCHWORDS: CONTRACT - vendor and purchaser - lease granting option to purchase - subdivision consent - court management of specific performance - parties agreeing to private easement over pipes for facilities - public utility requiring new connections - whether vendor did everything reasonable to have subdivision plan registered within time specified in contract for sale - whether vendor's obligation is complied with by showing that non-compliance arises from some failure of an independent contractor - rescission. (ND)
LEGISLATION CITED: Conveyancing Act 1919
Environmental Planning and Assessment Act 1979
Local Government Act 1919
Sydney Water Act 1994
CASES CITED:
Butts v O'Dwyer (1952) 87 CLR 2
Hardy & Anor v Hardy [2001] NSWSC 1141
Hawes v Cuzeno Pty Ltd (1999) 10 BPR 18,011
Masters v Belpate Pty Ltd [2001] NSWSC 169
Multicon Engineering Pty Ltd v Federal Airports Corporation (1997) 47 NSWLR 631
Pejovic v Malinic (1960) 60 SR(NSW) 184
Sunbird Plaza Pty Ltd v Maloney (1988) 166 CLR 254
DECISION: Appeal dismissed with costs




                          CA 40044/2022
                          ED 3936/2000

                          MASON P
                          GILES JA
                          IPP AJA

                          Friday 5 July 2002

Edmond WARDY v Gavin HARDY & Anor




      The appellant owned land in Alexandria, the greater portion of which is occupied by a building subject to a registered lease to the first respondent. The smaller portion is occupied by another building, and both buildings share common connections for water sewerage and drainage. The lease was for a 7 year term commencing in mid-1995, with an option to purchase. Shortly before the expiry of the option, the first respondent purported to exercise the option in favour of the second respondent. The appellant refused to acknowledge or complete the contract for sale and proceedings for specific performance ensued. The respondents gained an order for specific performance subject to the appellant obtaining sub-division consent from the local council, with the Court maintaining supervision and control.

      The appellant and second respondent exchanged contracts in April 2001, with a draft unregistered plan annexed to the contract. The plan provided for the creation of traditional private easements inter partes for water supply and for drainage over existing common pipes. Both portions of land had direct access to a road. The contract provided that the vendor “must do everything reasonable to have the plan registered within 6 months after the contract date…” giving the parties power to rescind after the expiration of the 6 month period. In…

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AGLC
Wardy v Hardy [2002] NSWCA 215
Case
[2002] NSWCA 215
Decision Date

CaseChat Overview and Summary

The dispute in *Wardy v Hardy* concerned a contract for the sale of land, where the purchaser sought specific performance of an option to purchase contained within a lease. The vendor resisted the claim, alleging the purchaser had rescinded the contract. The matter came before the Court of Appeal of New South Wales.

The primary legal issues before the court were whether the vendor had taken all reasonable steps to procure the registration of a subdivision plan within the time stipulated by the contract, and whether the vendor's obligations were discharged by demonstrating that any non-compliance stemmed from the failure of an independent contractor. The court also considered whether the purchaser was entitled to rescind the contract.

The court found that the vendor had not satisfied their contractual obligation to ensure the subdivision plan was registered within the specified timeframe. The vendor's argument that the delay was caused by an independent contractor was rejected, as the contractual obligation was absolute and not contingent on the performance of third parties. Consequently, the vendor was not entitled to rely on the independent contractor's failure as an excuse for non-performance. The court also determined that the purchaser had not validly rescinded the contract.

The appeal was dismissed, and the vendor was ordered to pay the costs of the appeal.

Orders

Orders of the court

Appeal dismissed with costs.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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