Wayne Blundell and Geoffrey Bennett v Kolmat Pty Ltd

Wayne Blundell and Geoffrey Bennett (the applicants) sought to have a caveat lodged by Kolmat Pty Ltd (the respondent) removed from title. The applicants were the registered proprietors of land at 140-142 Princes Highway, Kogarah, New South Wales. The respondent claimed an equitable interest in the land by virtue of an alleged oral agreement for the sale of the land to it. The applicants sought an order for the removal of the caveat pursuant to section 97 of the Real Property Act 1900 (NSW). The matter was heard in the Supreme Court of New South Wales.

The primary legal issue before the court was whether the respondent had established a sufficient equitable interest in the land to justify the continued existence of the caveat. This required the court to determine whether an oral agreement for the sale of land had been concluded between the parties, and if so, whether that agreement was sufficiently evidenced in writing to satisfy the requirements of section 54A of the Conveyancing Act 1919 (NSW), or alternatively, whether there were sufficient acts of part performance to take the oral agreement out of the operation of the Statute of Frauds.

Justice McDonagh found that the respondent had failed to establish the existence of a concluded oral agreement for the sale of the land. His Honour considered the evidence of communications between the parties and concluded that while negotiations had occurred, they had not reached a point where a binding agreement was formed. Consequently, the respondent did not possess an equitable interest in the land that would support the lodgement of a caveat. The court applied the principles relating to the formation of contracts and the requirements for establishing an equitable interest in land, including the need for a concluded agreement and the operation of statutory provisions requiring written evidence or part performance for contracts concerning land.

The court ordered that the caveat lodged by Kolmat Pty Ltd be removed from the title to the land at 140-142 Princes Highway, Kogarah, New South Wales.