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[2020] NSWSC 413
Supreme Court of NSW
2019-10-17
Ward CJ, Darke J
Original judgment source is linked above.
Background
The subject land
Marketing of property for sale in 2015
The purchasers
Inspections of the property
Early June 2015
18 June 2015 - first inspection by Mr Cheers
1 July 2015 - meeting with Mr Cheers, Mr Adam Mehmet with Mr Lonergan
2 July 2015 - second inspection by Mr Cheers (first inspection by Mr Adam Mehmet)
3 and 4 July 2015 - offer of $3 million for property and business
6 July 2015 - contracts for sale of land/sale of business exchanged
Contract for sale of land
9 and 10 July 2015 - the Parker Report
13 July 2015 - meeting of Adam Mehmet and Mr Cheers with Mr Carter
14 July 2015 meeting with Adam Mehmet and Mr Cheers with Mr Garrett; conversations with Mr Lonergan/Mr Connelly
15 July 2015 - cancellation of meeting with Mr Connelly; Mr Garrett ceases to act
16 July 2015 - meeting in Mr Garrett's boardroom
17 July 2015 - lodgement by Mr Garrett of transmission application
18 July 2015 - retainer of new solicitors for purchasers
AHIMS search result
AHIMS site card
Correspondence between solicitors as to the alleged defects in title
Re-sale of the property
Proceeding
Evidentiary rulings
Hearsay evidence subject of objection: ss 72 and 74 of the Evidence Act
Further observations as to the documentary evidence listed above
Further observations as to the oral (reputation) evidence
Ms Philippa Nichol (previous owner of the Rainforest Resort land)
Ms Annette Kelly and Ms Theresa Nicholls (Arakwal community members and descendants of Harry and Clara Bray)
Vendors' evidentiary objections
Purchasers' submissions
Determination
Consideration of Wigmore on Evidence
Land Boundaries and Customs
Events of general history
Admissibility under s 72: Aboriginal and Torres Strait Islander traditional laws and customs
Admissibility under s 74: public and general rights
Admissibility under s 69: business records
Further evidence subject of objection: "admissions"
Determination
The substantive issues in the proceedings
National Parks and Wildlife legislation
The cases for the plaintiffs and for the vendors
Purchasers' principal repudiation case
Vendors' obligation to prove and provide good title
Purchasers' submissions
Vendors' submissions
Purchasers' response
Determination
Crowe v Rindock
Conclusion
Purchasers' alternative case re Aboriginal objects as a defect in title and Flight v Booth
Credibility findings
Mr Cheers
Mr Adam Mehmet
Mr Ian Mehmet
Messrs Errol and Cameron Mehmet
Ms Annette Kelly and Ms Theresa Nicholls
Ms Phillippa Nichols
Mr Tim Lynch
Mr Tim Robins
Mr Carter
Ms Ruth Gotterson
Mr Stephen Connelly
Mr Chris Lonergan
Mr Stuart Garrett
The alleged Aboriginal objects
The memorial stone and plaque
The remains of Harry and Clara Bray (and possibly one or more of their children)
Remains/burials of other Aboriginal persons
Remains of a gunyah
A "mound" of significance to the Aboriginal people
Bunya pine
Determination
Purchasers' alternative repudiation case
Purchasers' submissions
Vendors' submissions
Determination
Conveyancing Act s 55(1) and s 55(2A)
Misrepresentation case
Purchasers' submissions
Vendors' submissions
Determination
Mr Cheers' denial of guarantee claim
Relief
Conclusion
Orders
DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 17 April 2020
Mehmet
Carter
75; (2005) 12 BPR 22,823 Dainford Ltd v Lam (1985) 3 NSWLR 255 Davies v Morgan (1831) 1 Cr & J 587; 148 ER 1557 (Ex) DCT Projects Pty Ltd v Champion Homes Sales Pty Ltd [2016] NSWCA 117 De Rose v State of South Australia [2002] FCA 1342 Dovuro Pty Ltd v Wilkins (2003) 215 CLR 317; [2003] HCA 51 DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423; [1978] HCA 12 Eighth SRJ Pty Ltd v Merity (1997) 7 BPR 15,189 Elwes v Briggs Gas Company (1886) 33 Ch D 562 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Festa Holdings Pty Limited v Adderton [2004] NSWCA 228 Fink v Robertson (1907) 4 CLR 864 [1907] HCA 7 Fligg v Owners Strata Plan 53457 [2012] NSWSC 230 Flight v Booth [1834] Eng R 1087; (1834) 131 ER 1160 Foran v Wight (1989) 168 CLR 385; [1989] HCA 51 Frankel v Paterson [2015] NSWSC 1307 Galafassi v Kelly (2014) 87 NSWLR 119; [2014] NSWCA 190 Gardiner v Orchard (1910) 10 CLR 722; [1910] HCA 18 Georgeski v Owners Corporation SP49833 (2004) 62 NSWLR 534 Godfrey Constructions Pty Ltd v Kanangra Park Pty Limited (1972) 128 CLR 529 Greek Orthodox Parish Community of St Marys and District Ltd v Denis Stanley Merrick [2014] NSWSC 1196 Gumana v Northern Territory (2005) 141 FCR 457; [2005] FCA 50 Gupta v Fordham Laboratories Pty Ltd [2018] NSWSC 551 Gustin v Taajamba Pty Ltd (1988) NSW Conv R 55-433 Halsey v Grant (1806) 13 Ves 73 Hamilton v Munro (1951) 51 SR (NSW) 250 Hasanovic v Polistena [1982] NSW Conv R 55-078 Henry v Director-General of the Department of Environment and Conservation (2007) 159 LGERA 17; [2007] NSWLEC 722 Heyman v Darwins Ltd [1942] AC 356 Hoy Mobile Pty Ltd v Allphones Retail Pty Ltd (2008) 167 FCR 314; [2008] FCA 369 Idoport Pty Limited v National Australia Bank Limited [2000] NSWSC 1215 Jarosz v State of New South Wales [2019] NSWSC 692 Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298 Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd (2007) 233 CLR 115; [2007] HCA 61 Lahoud v Lahoud (No 2) [2005] NSWSC 1019 Lancaster v R (2014) 44 VR 820; [2014] VSCA 333 Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd (1989) 166 CLR 623; [1989] HCA 23 Lewis v Keene (1936) 36 SR (NSW) 493 Liberty Grove v Yeo [2006] NSWSC 1373; (2006) 12 BPR 23,709 Liverpool Holdings Ltd v Gordon Lynton Car Sales Pty Ltd [1978] Qd R 279; (1978) 43 LGRA 388 Lowndes v Lane (1789) 2 Cox, Eq Cas 363; 30 ER 16 Lustre Hosiery Ltd v York (1935) 54 CLR 134; [1935] HCA 71 Mabo v State of Queensland [1992] 1 Qd R 78 McKinnon v Bliss 21 NY 206 (1860) McRae v Commonwealth Disposals Commission (1951) 84 CLR 377; [1951] HCA 79 Mehmet v Carter (2018) 98 NSWLR 977; [2018] NSWCA 305 Mehmet v Carter [2017] NSWSC 1067 Michael Realty Pty Ltd v Carr [1977] 1 NSWLR 553 Micos v Diamond [1970] 3 NSWR 407; (1970) SR (NSW) 392 Milirrpum v Nabalco Pty Ltd (Gove Land Rights Case) (1971) 17 FLR 141 Morris v Baron & Co [1918] AC 1 Moseley v Davies (1822) 11 Price 162 National Commercial Banking Corporation of Australia Limited v Cheung (1983) 1 ACLC 1326 NEC Information Systems Australia Pty Limited v Linton (Supreme Court (NSW), Wood J, 17 April 1985, unrep) New South Wales Aboriginal Land Council v Jones (1998) 43 NSWLR 300 North Shore Gas Company Ltd v Commissioner of Stamp Duties (NSW) (1940) 63 CLR 52; [1940] HCA 7 Oldfield v Round (1800) 5 Ves 508; 31 ER 707 Pamamull v Albrizzi (Sales) Pty Ltd (No 2) [2011] VSCA 260 Pratt v Hawkins (1991) 32 NSWLR 319 Progressive Mailing House Pty Ltd v Tabali Pty Ltd (1985) 157 CLR 17 Re Brine and Davies' Contract [1935] Ch 338 Re Estate of Jerrard, Deceased (2018) 97 NSWLR 1106; [2018] NSWSC 781 Re Ford & Hill (1879) 10 Ch D 365 Re Ridgeway and Smith's Contract [1930] VLR 111; (1929) 36 ALR 79 Re Spollon and Long's Contract [1936] Ch 713 Redapple and Howgate v Hely (1931) 45 CLR 452 Richards v Morgan (1863) 4 B & S 641 Sampi (on behalf of the Bardi and Jawi People) v Western Australia [2010] FCAFC 26; (2010) 266 ALR 537 Sandy (on behalf of the of Yugara People) v State of Queensland (No 2) [2015] FCA 15; (2015) 325 ALR 583 SAS Realty Developments Pty Ltd v Kerr [2013] NSWCA 56 Schulze v Williams [2006] SASC 330 Scottish Amicable Life Assurance Society v Reg Austin Insurance Pty Limited (1995) 9 ACLR 909 Shepherd v Croft [1911] 1 Ch 521 Smith v Joyce (1954) 89 CLR 529; [1954] HCA 15 South Eastern Drainage Board (South Australia) v Savings Bank of South Australia (1939) 62 CLR 603 Spooner v Brewster (1825) 3 Bing 136; 130 ER 465 Stockland (Constructors) Pty Ltd v Carriage (2003) 56 NSWLR 636; [2002] NSWSC 1179 Szanto v Bainton [2011] NSWSC 278 Tambel Pty Ltd v Field (1982) 2 BPR 9593; (1982) NSW ConvR ¶55-077 Thomas v Jenkins (1837) 6 Ad & El 525; 112 ER 201 Torr v Harpur (1940) 40 SR (NSW) 585 Traderight (NSW) Pty Ltd v Bank of Queensland Ltd (No 17) [2014] NSWSC 55 Travinto Nominees Pty Ltd v Vlattas (1973) 129 CLR 1 Walton v Stocks & Parkes Investments Pty Ltd (1975) 1 BPR 9660 Want v Stallibrass (1873) LR 8 Ex 175 Waugh Hotel Management Pty Ltd v Marrickville Council [2009] NSWCA 390 Williams v Williams (1882) 20 Ch D 659 Winchcombe Carson Trustee Company v Ball-Rand Pty Ltd [1974] 1 NSWLR 477 Wright v Tatham (1857) 5 Cl & F 670 Yandle and Sons v Sutton [1922] 2 Ch 199 Yanner v Eaton (1999) 201 CLR 351; [1999] HCA 53 Yarmirr v Northern Territory (No 2) (1998) 82 FCR 533 Texts Cited: Australian Law Reform Commission, Uniform Evidence Law Report (ALRC Report 102, December 2005) Christopher Rossiter, Principles of Land Contracts and Options in Australia (2003, LexisNexis Butterworths) D Skapinker and P Lane, Sale of Land: Commentary and Cases (4th ed, 2009, LawBook Co) FE Moss, Sale of Land in New South Wales (5th ed, 1973, Butterworths) Hon Michael Black AC, "Developments in Practice and Procedure in Native Title Cases" (2002) 13 Public Law Review 16 ICF Spry, Equitable Remedies (8th ed, 2009, Sweet & Maxwell J D Heydon, Cross on Evidence (6th ed, 2000, 11th ed, 2017, LexisNexis Butterworths) James H Chadbourn, Evidence in Trials at Common Law (Chadbourn Revision, 1974) Bk 5 Maurice Ryan and Robert J Smith, Time and Tide Again: A History of Byron Bay (2001, Northern Rivers Press) New South Wales Law Reform Commission, Uniform Evidence Law Report (NSWLRC Report 112, December 2005) New South Wales Legislative Assembly, Parliamentary Debates (Hansard), 17 October 2007 New South Wales Legislative Assembly, Parliamentary Debates (Hansard), 4 November 1969 New South Wales Legislative Council, Parliamentary Debates (Hansard), 24 October 2007 PJ Butt, The Standard Contract for Sale of Land in New South Wales (2nd ed, 1998, Law Book Co) Victorian Law Reform Commission, Uniform Evidence Law Report (VLRC Final Report, December 2005) Category: Principal judgment Parties: Ian Mehmet t/as ATF Ian G Mehmet Testamentary Trust (First Plaintiff/Cross-Defendant) Cameron Mehmet t/as ATF Cameron Mehmet (Second Plaintiff/Cross-Defendant) Errol Mehmet t/as ATF Errol J Mehmet Testamentary Trust (Third Plaintiff/Cross-Defendant) Cheers Aviation Pty Ltd t/as ATF KMGC Investment Trust (Fourth Plaintiff/Cross-Defendant) Murray John Carter (First Defendant/Cross-Claimant) The Wheel Resort Pty Ltd (Second Defendant/Cross-Claimant) Cathscompany Pty Ltd (Third Defendant/Cross-Claimant) Matthews Cheers (Fourth Cross-Defendant) Representation: Counsel: D Smallbone with YLR Chen (Plaintiffs/Cross-Defendants) T Alexis SC with M Southwick (Defendants/Cross-Claimants)
Judgment
Summary of conclusions
[2014] VSCA 333
[2011] VSCA 260
[2006] SASC 330
[1999] HCA 53
(2010) 204 FCR 1
(1997) 42 NSWLR 710
(1922) 30 CLR 387
(1986) 69 ALR 715
(1996) 40 NSWLR 39
(1988) 21 NSWLR 160
(2005) 63 NSWLR 699
(1985) 3 NSWLR 255
(2003) 215 CLR 317
(1978) 138 CLR 423
(2007) 230 CLR 89
(1907) 4 CLR 864
(1989) 168 CLR 385
(2014) 87 NSWLR 119
(1910) 10 CLR 722
(2004) 62 NSWLR 534
(1972) 128 CLR 529
(2005) 141 FCR 457
(2007) 159 LGERA 17
(2008) 167 FCR 314
(1959) 101 CLR 298
(2007) 233 CLR 115
(2014) 44 VR 820
(1989) 166 CLR 623
(1935) 54 CLR 134
(1951) 84 CLR 377
(2018) 98 NSWLR 977
(1971) 17 FLR 141
(1998) 43 NSWLR 300
(1940) 63 CLR 52
(1991) 32 NSWLR 319
(1985) 157 CLR 17
(2018) 97 NSWLR 1106
(1929) 36 ALR 79
(1931) 45 CLR 452
(2010) 266 ALR 537
(2015) 325 ALR 583
(1954) 89 CLR 529
(1939) 62 CLR 603
(2003) 56 NSWLR 636
(1973) 129 CLR 1
(1999) 201 CLR 351
(1998) 82 FCR 533
(2002) 214 CLR 422