Metroland Funds Management Ltd v Skyrise Consultants Pty Ltd

EX TEMPORE Judgment 1This is a claim by the plaintiffs for return of $300,000 paid as a deposit under a contract entered into with the first defendant, Skyrise Consultants Pty Ltd ( "Skyrise" ). The plaintiffs were joint venturers trading as Metro Plaza Chinatown. They intended to develop a site at 68-71 Quay Street, Haymarket. It was proposed that Skyrise would provide advisory services for the development. 2Mr Frank Shien is a director of Metroland Funds Management Ltd ( "Metroland" ), the first plaintiff. There were negotiations between Mr Shien and Mr Vincent Pang, who was a director of the first defendant and who was responsible for its day-to-day operations. Mr Yong Zhang is a director of the second plaintiff, Heng Ji Australia Investments Pty Ltd. It is accepted that Mr Shien was authorised to make decisions on behalf of the joint venturers. It is clear that there were some negotiations between Mr Shien and Mr Pang, as they had a number of meetings prior to 26 March 2009. The intention was that Skyrise would provide some advisory services to assist with the planning of the proposed Haymarket building and to assist with obtaining a development approval for what was proposed for the site and to give some assistance in obtaining a higher floor space ratio for that development. 3There was a meeting between Mr Shien and Mr Pang on 26 March 2009. There is some dispute about what happened at that meeting, but there is no dispute that a letter from Metro Plaza Chinatown addressed to Skyrise was signed by Mr Shien and Mr Zhang on behalf of the plaintiff companies, and by Mr Pang on behalf of Skyrise, and also on his own behalf as guarantor of the obligations of Skyrise, which would arise under the letter if that letter was a contractual document ( the "Letter" ). The Letter, so far as is relevant, is in the following terms: " 68-71 Quay Street, Haymarket ("Site" ) We confirm that we wish to retain Skyrise Consultants Pty Ltd ( "Skyrise" ) as consultant to provide us with advisory services on town planning, design, feasibility and development and marketing strategies for our proposed development of the Site ( "Services" ). In order to demonstrate our intention to proceed with this development, we are paying a good faith deposit in the amount of $300,000 ( "Deposit" ) to Skyrise on the following terms: