Churnin v Pilot Developments Pty Ltd; Mason v Pilot Developments Pty Ltd; Cheetham v Pilot Developments Pty Ltd; Blackman v Pilot Developments Pty Ltd; Blackman v Pilot Developments Pty Ltd; Glover v Pilot Developments Pty Ltd [2007] NSWSC 1459

Churnin v Pilot Developments Pty Ltd; Mason v Pilot Developments Pty Ltd; Cheetham v Pilot Developments Pty Ltd; Blackman v Pilot Developments Pty Ltd; Blackman v Pilot Developments Pty Ltd; Glover v Pilot Developments Pty Ltd [2007] NSWSC 1459

Damages should be assessed based on the loss naturally consequent on the injunction as would reasonably be contemplated, using contract damages principles but with an equitable discretion. Here, Pilot is entitled under the undertaking to compensation calculated as the loss of use of funds represented by the proceeds of sale of the units, at the court interest rate for the period loss was suffered, less a discount for mitigation. Beacon's claim is not allowed as it overlaps with Pilot's claim.

Parties
Plaintiff: Brian Churnin; Plaintiff: Janet Churnin; Plaintiff: Brendan Linnell Mason; Plaintiff: Juliet Anne Evelyn London; Plaintiff: David Mark Blackman; Plaintiff: Brigitte Rose Blackman; Plaintiff: Jeffrey Edward Blackman; Plaintiff: Richard Ronald Glover; Defendant: Pilot Developments Pty Ltd; Defendant: Beacon Development Corporation Pty Ltd; Defendant: Parterre Glebe Pty Ltd
Jurisdiction
Australia
Judgment Date
14 December 2007
Procedural Posture
Assessment of Damages Pursuant to Undertaken as to Damages Following Unsuccessful Proceedings for Specific Performance and Interlocutory Injunctions / Final Judgment on Assessment of Damages
Outcome
Plaintiffs in proceedings 2031/01 to pay Pilot Developments Pty Ltd $76,931 as compensation pursuant to undertaking as to damages; pro rata orders to be made in other matters; Beacon's claim not allowed; Parterre's claim withdrawn.
Legal Topics
Equitable Remedies, Injunctions, Undertaking as to Damages, Assessment of Damages, Specific Performance
Equity Equitable Remedies Injunctions Undertaking as to Damages Assessment of Damages Specific Performance

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Parties

Brian Churnin

Plaintiff

Janet Churnin

Plaintiff

Brendan Linnell Mason

Plaintiff

Juliet Anne Evelyn London

Plaintiff

David Mark Blackman

Plaintiff

Brigitte Rose Blackman

Plaintiff

Jeffrey Edward Blackman

Plaintiff

Richard Ronald Glover

Plaintiff

Pilot Developments Pty Ltd

Defendant

Beacon Development Corporation Pty Ltd

Defendant

Parterre Glebe Pty Ltd

Defendant

Procedural Posture

Assessment of Damages Pursuant to Undertaken as to Damages Following Unsuccessful Proceedings for Specific Performance and Interlocutory Injunctions / Final Judgment on Assessment of Damages

Legal Issues

  1. 1 How damages should be assessed pursuant to an undertaking as to damages given when interlocutory injunctions were granted preventing resale of real property units which the plaintiffs sought to purchase, where the plaintiffs were ultimately unsuccessful in litigation for specific performance.

Ratio Decidendi

Damages should be assessed based on the loss naturally consequent on the injunction as would reasonably be contemplated, using contract damages principles but with an equitable discretion. Here, Pilot is entitled under the undertaking to compensation calculated as the loss of use of funds represented by the proceeds of sale of the units, at the court interest rate for the period loss was suffered, less a discount for mitigation. Beacon's claim is not allowed as it overlaps with Pilot's claim.

Court Disposition

Plaintiffs in proceedings 2031/01 to pay Pilot Developments Pty Ltd $76,931 as compensation pursuant to undertaking as to damages; pro rata orders to be made in other matters; Beacon's claim not allowed; Parterre's claim withdrawn.

Orders

  • Plaintiffs in 2031/01 to pay the first defendant $76,931 as compensation resulting from an undertaking to the court as to damages.
  • Pro rata compensation orders to be formulated in the remaining matters.