Coplin v Al Maha Pty Ltd
[2019] NSWCA 159
At a glance
Source factsCourt
Court of Appeal (NSW)
Decision date
2019-05-07
Before
Macfarlan JA, Leeming JA, Payne JA, Kunc J
Catchwords
- [1973] HCA 36 Bahr v Nicolay (No 2) (1988) 164 CLR 604
- [1998] HCA 16 Comdox v Robins [2009] NSWSC 367 Coulton v Holcombe (1986) 162 CLR 1
- [1982] HCA 52 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104
- [1968] HCA 8 Whisprun Pty Ltd v Dixon [2003] HCA 48
Source
Original judgment source is linked above.
Catchwords
Judgment (36 paragraphs)
[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]
HEADNOTE [This headnote is not to be read as part of the judgment] The appellant (as grantor) and the first respondent (as grantee) entered into a deed styled "The Put and Call Option Agreement" ("Option Deed") in relation to a property in St Leonards. Annexure E to the Option Deed was a draft contract for sale. The Option Deed provided that the first respondent could exercise the option by giving notice to the appellant's "solicitor/conveyancer". The appellant's "solicitor/conveyancer" was recorded as "V.J Tait & Associates" in the draft contract. At some point after the Option Deed was signed, the appellant ceased to retain VJ Tait & Associates. No notice of that matter was given to the first respondent. The first respondent purported to exercise the option by delivering to VJ Tait & Associates a notice of exercise of the call option, a notice nominating the second respondent as purchaser, and a cheque for the balance of the deposit. The respondents sought specific performance and declarations that the option had been validly exercised and that there was an enforceable contract between the appellant and the second respondent as the first respondent's nominee. The primary judge made those declarations and granted specific performance to the respondents: Al Maha Pty Limited v Coplin [2018] NSWSC 1623. The issues on appeal were: (i) whether the first respondent validly exercised the option; (ii) uncertainty, payment of the deposit, and validity of the resulting contract; (iii) validity of the purported termination of the resulting contract; (iv) whether specific performance should have been ordered; and (v) whether notice was given of a change in "solicitor/conveyancer". The Court, dismissing the appeal, held: (i) The text of the Option Deed objectively revealed an intention that the terms of the draft contract would be considered when construing the terms of the Option Deed. VJ Tait & Associates was the "solicitor/conveyancer" under the Option Deed. The option was validly exercised: [86]. Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37; Australian Broadcasting Commission v Australian Performing Right Association Ltd (1973) 129 CLR 99; [1973] HCA 36; HP Mercantile Pty Ltd v Hartnett [2016] NSWCA 342; Hagerty v Hills Central Pty Ltd [2018] NSWCA 200 applied. Pratt & Anor v Hawkins (No 2) (1991) NSW ConvR 55-592 distinguished. (ii) The Option Deed is capable of definite meaning and is not void for uncertainty. The deposit was paid as required by the Option Deed. Since the call option was validly exercised, a valid and enforceable contract was in effect: [103], [111], [118]. Austra Tanks Pty Ltd v Running [1982] 2 NSWLR 840; Meehan v Jones (1982) 149 CLR 571; [1982] HCA 52; Upper Hunter County District Council v Australian Chilling and Freezing Co Ltd (1968) 118 CLR 429; [1968] HCA 8 applied. Ma v Adams [2015] NSWSC 1452; Josland v Mullaley Properties Pty Ltd (1993) 6 BPR 13,285 distinguished. (iii) The appellant did not have the right to terminate the contract for sale since the deposit was paid as required: [125]. (iv) The primary judge did not err in ordering specific performance. It could be inferred from the totality of the material before his Honour that the second respondent was ready, willing and able to perform her contractual obligations: [138]. Bahr v Nicolay (No 2) (1988) 164 CLR 604; [1998] HCA 16 applied. (v) The appellant was precluded from advancing for the first time on appeal an argument that notice was given of a change in "solicitor/conveyancer" since the issue could realistically have been met by the respondents calling evidence and conducting their case differently at the trial: [152]-[153]. Suttor v Gundowda Pty Ltd (1950) 81 CLR 418; [1950] HCA 35; Coulton v Holcombe (1986) 162 CLR 1; [1986] HCA 33; Whisprun Pty Ltd v Dixon [2003] HCA 48; 77 ALJR 1598; Multicon Engineering Pty Ltd v Federal Airports Corp (1997) 47 NSWLR 631 applied.