St Jude Property Investments Pty Limited v Folari Pty Limited [2013] NSWSC 957

St Jude Property Investments Pty Limited v Folari Pty Limited [2013] NSWSC 957

Only expenses relating to obtaining development approval up to the date of approval, and agreed acquisition/holding costs, are deductible from the joint venture profits. The $275,000 paid to Mr Abbi Saab is not an expense but a buyout of his joint venture interest. Home warranty insurance, post-approval expenses (including heritage report, post-approval rates/taxes, removal of caveats, demolition), are not allowable. Allowable expenses attract interest at 6.25% per annum to approval date. Costs should follow the event.

Jurisdiction
Australia
Judgment Date
15 July 2013
Procedural Posture
Equity Proceedings (account of Profits) / Determination of Accounts Following Earlier Declarations
Outcome
Accounts determined; orders to be brought in reflecting the reasons; costs ordered in favour of first plaintiff.
Legal Topics
['joint Venture' 'account of Profits' 'determination of Allowable Expenses']
['contract Law' 'equity'] ['joint Venture' 'account of Profits' 'determination of Allowable Expenses']

Case Brief

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Procedural Posture

Equity Proceedings (account of Profits) / Determination of Accounts Following Earlier Declarations

Legal Issues

  1. 1 ['Whether payment to Mr Abbi Saab of $275,000 was an expense of the joint venture' 'Whether home warranty insurance payment was a joint venture expense' 'Whether post-approval expenses (heritage report, certain rates and taxes, caveat removal, demolition costs) were claimable under the joint venture accounting' 'Entitlement to interest and its rate' 'Costs disposition']

Ratio Decidendi

Only expenses relating to obtaining development approval up to the date of approval, and agreed acquisition/holding costs, are deductible from the joint venture profits. The $275,000 paid to Mr Abbi Saab is not an expense but a buyout of his joint venture interest. Home warranty insurance, post-approval expenses (including heritage report, post-approval rates/taxes, removal of caveats, demolition), are not allowable. Allowable expenses attract interest at 6.25% per annum to approval date. Costs should follow the event.

Court Disposition

Accounts determined; orders to be brought in reflecting the reasons; costs ordered in favour of first plaintiff.

Orders

  • ['Direct parties to bring in short minutes of order reflecting these reasons and agreements within seven days; in default, submit competing calculations for further argument.' "First defendant to pay first plaintiff's costs of and incidental to the taking of these accounts."]