Fu v Bucasia Pty Ltd
[2014] NSWSC 325
At a glance
Source factsCourt
Supreme Court of NSW
Decision date
2014-03-18
Before
Stevenson J
Catchwords
- Sturesteps v HIH Overseas Holdings Ltd (in liq) [2011] NSWCA 315
Source
Original judgment source is linked above.
Catchwords
Judgment (9 paragraphs)
Introduction 1By a contract dated 18 August 2010 ("the Contract") the plaintiff, Mr Fu, contracted to purchase from the defendant, Bucasia Pty Ltd, a lot ("Shop 116") in a proposed commercial strata development at Eastwood for $627,000 plus GST. Mr Fu purchased Shop 116 "off the plan". 2Completion of the Contract took place on 9 January 2013, by which time the development had been completed. 3In the Contract, Shop 116 was described as: "Shop 116 located on Retail Level 1 shown on the plan annexed hereto and marked A being part of a strata subdivision of proposed stratum lot 100 in the draft plan of subdivision of lot 1 in DP 1144237." 4The draft plan of subdivision attached to the Contract showed the area of Shop 116 as 57m2. 5Clause 64 of the Contract provided for "Price adjustment" in the following terms: "The vendor and purchaser agree that in the event that the area of the lot sold pursuant to this contract is more or less than the area shown on the Strata Plan, then the purchase price specified in this contract shall be varied as follows and the revised purchase price shall be deemed to replace the purchase price specified on the front page of this contract: RPP = RA x $11,000.00 per square metre where: RPP = the revised purchase price which shall apply instead of the purchase price specified in this contract; and RA = the revised area of the lot being sold by the vendor to the purchaser pursuant to this contract which area shall be determined by a survey of the area of the lot based on the Property Council of Australia Methods for Measurement Guidelines and, in particular, the measurements of the lot will include to: (1) the front face of the premises; and (2) the middle of the dividing walls to each of the side walls where these are shared walls; and (3) the outside face of all other walls of the premises." (emphasis added) 6The Property Council of Australia Methods for Measurement Guidelines ("the PCA Guidelines") provide "Measurement Guidelines" for "Leased Premises". There are no separate guidelines for premises under purchase. 7Relevantly, the PCA Guidelines provide: "1.1 Gross Lettable Area - Retail is the aggregate of floor space contained within a tenancy at each floor level using the following rules: 1.1.1 in the case of external building walls, fire passage walls, service passage walls, standard and service facility walls and the like, measuring from the internal finished surface of the dominant portion of those walls; 1.1.2 in the case of inter-tenancy walls, measuring from the centre line of those walls; 1.1.3 in the case of shop fronts on or inside the mall line, measuring from the mall line as shown on appropriate floor plans of the tenancy regardless of whether or not the shop front is set back, in whole or part, from the mall line...". (emphasis added) 8The effect of cl 64 was that there was to be a "price adjustment" if the product of the "RA" (revised area) and $11,000 per square metre was more or less than the purchase price of $627,000. The revised area was to be calculated by a survey of the kind described in cl 64. 9Application of the PCA Guidelines themselves to Shop 116, without regard to the indices in subparagraphs (1), (2) and (3) of the definition of "revised area" in cl 64, yields an area of 55.5m2 (being the "Gross Lettable Area - Retail" as defined in the PCA Guidelines). 10On the other hand, if the indices in subparagraphs (1), (2) and (3) of the definition of "revised area" of cl 64 are applied, the area of Shop 116 is 59.3m2. 11The difference arises because the PCA Guidelines require that, relevantly, the measurement of the area of Shop 116 be from the "internal finished surface" of the rear wall of Shop 116 (see paragraph 1.1.1 of the PCA Guidelines), whereas cl 64(3) of the Contract provides, in the definition of "revised area", that the measurement be from the "outside face" of that wall. 12Mr Fu seeks a declaration that the area of Shop 116 is 55.5m2 based upon his contention as to the proper construction cl 64 of the Contract. 13The particular declaration sought by Mr Fu is as follows: "A declaration that on a proper construction of Clause 64 of the Contract of 18 August 2010 the definition of RA within that clause will be in accordance with the Property Council of Australia Methods for Measurement Guidelines namely, the measurements for the lot will include: (a) to the internal finished surfaces of permanent internal walls; (b) to the internal finished surfaces of dominant portions of the permanent outer building wall; (c) to the centreline of inter-tenancy walls; (d) to the edge of tiles adopted as the mall line; (e) and will exclude areas of the lot where the height above the floor is less than 1.5 metres." 14If Mr Fu's contentions are made out, he is entitled to a price adjustment of $41,800. That is the amount at stake in these proceedings. 15An earlier claim by Mr Fu that the Contract be rectified was abandoned.