Champion Homes Sales Pty Ltd v JKAM Investments Pty Ltd; Hotray Pty Ltd v JKAM Investments Pty Ltd (JKAM Investments Pty Ltd v Karl Damien- First Cross Claim; Karl Damien v JKAM Investments Pty Ltd- Second Cross Claim) [2015] NSWSC 272

Champion Homes Sales Pty Ltd v JKAM Investments Pty Ltd; Hotray Pty Ltd v JKAM Investments Pty Ltd (JKAM Investments Pty Ltd v Karl Damien- First Cross Claim; Karl Damien v JKAM Investments Pty Ltd- Second Cross Claim) [2015] NSWSC 272

Damien was liable to JKAM for the assigned construction debt of $528,000 and $21,000 for car park works, while JKAM was liable to Damien for $411,000 in mortgage repayments under clause 2(d) of the Deed. Clause 12.1 did not suspend the mortgage repayment obligation, but did suspend outgoings until registration of the Head Lease. After agreed set-off, JKAM was entitled to judgment for $138,000, and declaratory relief about the settlement amount was unnecessary.

Jurisdiction
Australia
Judgment Date
20 March 2015
Procedural Posture
Cross Claims in Equity Division Proceedings Concerning Interests in Land and Contractual Obligations / Principal Judgment After Separate Determination of Cross Claims
Outcome
Judgment for JKAM against Damien in the amount of $138,000, with costs to be heard.
Legal Topics
['construction of Deed' 'contract for Sale of Land' 'head Lease' 'assigned Debt' 'set Off' 'mortgage Repayments and Outgoings']
['equity' 'property Law' 'contract Law'] ['construction of Deed' 'contract for Sale of Land' 'head Lease' 'assigned Debt' 'set Off' 'mortgage Repayments and Outgoings']

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Procedural Posture

Cross Claims in Equity Division Proceedings Concerning Interests in Land and Contractual Obligations / Principal Judgment After Separate Determination of Cross Claims

Legal Issues

  1. 1 ['Whether JKAM was entitled as assignee to recover a debt owed by Damien to Architectural Collections Pty Ltd for construction works.' 'Whether clause 12.1 of the Contract for Sale relieved JKAM from responsibility under clause 2(d) of the Deed for mortgage repayments while the Head Lease was unregistered.' 'Whether JKAM was liable for outgoings including council rates, water rates and land tax before registration of the Head Lease.' 'Whether Damien owed JKAM an amount for car park works under clause 2(g) of the Deed.' 'Whether declaratory relief should be granted as to the amount payable on settlement under the Contract for Sale.']

Ratio Decidendi

Damien was liable to JKAM for the assigned construction debt of $528,000 and $21,000 for car park works, while JKAM was liable to Damien for $411,000 in mortgage repayments under clause 2(d) of the Deed. Clause 12.1 did not suspend the mortgage repayment obligation, but did suspend outgoings until registration of the Head Lease. After agreed set-off, JKAM was entitled to judgment for $138,000, and declaratory relief about the settlement amount was unnecessary.

Court Disposition

Judgment for JKAM against Damien in the amount of $138,000, with costs to be heard.

Orders

  • ['Judgment for JKAM against Damien in the amount of $138,000 having regard to set-off.' 'The parties are to be heard on costs.']