Scott v Ennis-Oakes [2019] NSWSC 1257

Scott v Ennis-Oakes [2019] NSWSC 1257

The plaintiffs' claim for loss of bargain damages failed because any entitlement to terminate for the defendant's alleged wrongful conduct had not been exercised before the contract was rescinded under Additional Condition 37 on 21 December 2017. The plaintiffs had instead affirmed the contract by seeking specific performance, so the contract remained on foot until the accepted valid rescission. No cause of action for loss of bargain damages had accrued by that time, and clause 19.2.3 did not convert the rescission into a basis for such damages.

Jurisdiction
Australia
Judgment Date
23 September 2019
Procedural Posture
Equity Proceedings Concerning a Contract for Sale of Land and a Claim for Loss of Bargain Damages / Principal Judgment After Hearing
Outcome
Plaintiffs' claim for loss of bargain damages fails; proceedings dismissed with costs.
Legal Topics
['contract for Sale of Land' 'off the Plan Contract' 'sunset Clause' 'rescission' 'specific Performance' 'repudiation' 'loss of Bargain Damages' 'costs']
['land Law' 'contract Law' 'equity' 'civil Procedure'] ['contract for Sale of Land' 'off the Plan Contract' 'sunset Clause' 'rescission' 'specific Performance' 'repudiation' 'loss of Bargain Damages' 'costs']

Case Brief

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Procedural Posture

Equity Proceedings Concerning a Contract for Sale of Land and a Claim for Loss of Bargain Damages / Principal Judgment After Hearing

Legal Issues

  1. 1 ["Whether the plaintiffs could recover loss of bargain damages where they did not terminate the contract for the defendant's alleged breach or repudiation before the contract was rescinded under Additional Condition 37." 'Whether clause 19.2.3 of the contract preserved a right to claim loss of bargain damages after rescission.' 'Whether it was necessary to determine the alleged breach of Additional Condition 36.2 or alleged repudiations in April and June 2017.']

Ratio Decidendi

The plaintiffs' claim for loss of bargain damages failed because any entitlement to terminate for the defendant's alleged wrongful conduct had not been exercised before the contract was rescinded under Additional Condition 37 on 21 December 2017. The plaintiffs had instead affirmed the contract by seeking specific performance, so the contract remained on foot until the accepted valid rescission. No cause of action for loss of bargain damages had accrued by that time, and clause 19.2.3 did not convert the rescission into a basis for such damages.

Court Disposition

Plaintiffs' claim for loss of bargain damages fails; proceedings dismissed with costs.

Orders

  • ['The proceedings are dismissed.' "The plaintiffs are to pay the defendant's costs of the proceedings." 'Any application to vary the costs order may be made by Notice of Motion filed within 14 days in accordance with Uniform Civil Procedure Rules 2005 (NSW), r 36.16.']