Liggins & Anor v Park Trent Properties Group Pty Ltd & Anor (No. 2) [2022] NSWSC 176

Liggins & Anor v Park Trent Properties Group Pty Ltd & Anor (No. 2) [2022] NSWSC 176

In light of the plaintiffs' reasonable pursuit of specific performance, the assessment date for damages is the date specific performance became unavailable (25 August 2020). The correct calculation of damages requires (i) deduction of all actual NRAS and similar incentives received; (ii) inclusion of depreciation claimed in the plaintiffs' tax returns; (iii) exclusion of potential future tax savings post-FY20; and (iv) consideration of actual (but not hypothetical) capital gains or losses up to the assessment date, without accounting for capital gains tax in the absence of a sale.

Jurisdiction
Australia
Judgment Date
03 March 2022
Procedural Posture
Equity Consequential Orders / Post Liability Determination: Assessment of Damages and Consequential Directions
Outcome
Directions and consequential orders made for further damages calculation; assessment date fixed as 25 August 2020 – date specific performance was no longer available; specific performance refused in earlier judgment.
Legal Topics
['breach of Contract' 'damages Assessment' 'specific Performance' 'sale of Land' 'remoteness of Damage' 'mitigation' 'lord Cairns Act Damages']
['contract Law' 'equity'] ['breach of Contract' 'damages Assessment' 'specific Performance' 'sale of Land' 'remoteness of Damage' 'mitigation' 'lord Cairns Act Damages']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Equity Consequential Orders / Post Liability Determination: Assessment of Damages and Consequential Directions

Legal Issues

  1. 1 ['What is the correct date for assessment of damages for breach of a buyback agreement for the sale of land?' "Whether and to what extent National Rental Affordability Scheme (NRAS) benefits should reduce the plaintiffs' damages claim?" 'Whether allowances for depreciation claimed in tax returns should be included in or excluded from the damages calculation?' "Whether potential future tax savings from continued ownership should reduce the plaintiffs' damages claim?" 'Whether capital gains associated with the properties between breach and judgment should reduce the damages claim?']

Ratio Decidendi

In light of the plaintiffs' reasonable pursuit of specific performance, the assessment date for damages is the date specific performance became unavailable (25 August 2020). The correct calculation of damages requires (i) deduction of all actual NRAS and similar incentives received; (ii) inclusion of depreciation claimed in the plaintiffs' tax returns; (iii) exclusion of potential future tax savings post-FY20; and (iv) consideration of actual (but not hypothetical) capital gains or losses up to the assessment date, without accounting for capital gains tax in the absence of a sale.

Court Disposition

Directions and consequential orders made for further damages calculation; assessment date fixed as 25 August 2020 – date specific performance was no longer available; specific performance refused in earlier judgment.

Orders

  • ["Proceedings to continue in the absence of a representative of Mr Liggins' estate (UCPR r 7.10(2)(a))" 'Matter listed for further directions on 5 April 2022' "Plaintiffs' solicitors to report with instructions on future estate representation" 'Parties to provide agreed or competing calculations of damages for...