Ng v Filmlock Pty Ltd [2014] NSWCA 389

Ng v Filmlock Pty Ltd [2014] NSWCA 389

The measure of damages for breach of a contract for sale of land is the difference between the contract price and the market value at the date of breach. The primary judge erred by using the price on resale 13 months after breach without evidence that this was the value at breach date. In the absence of evidence of market value at the breach date, the judgment could not stand. The matter should be remitted for parties to adduce evidence of value as at the correct date.

Jurisdiction
Australia
Judgment Date
13 November 2014
Procedural Posture
Appeal / Judgment on Appeal From Decision of Supreme Court of Nsw, Equity Division
Outcome
Appeal allowed; orders of primary judge set aside; matter remitted for further evidence; no order as to costs on appeal; costs of first instance to be determined by the trial judge.
Legal Topics
['damages for Breach of Contract' 'sale of Land' 'assessment of Damages' 'available Market' 'date of Assessment']
['contract Law'] ['damages for Breach of Contract' 'sale of Land' 'assessment of Damages' 'available Market' 'date of Assessment']

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Procedural Posture

Appeal / Judgment on Appeal From Decision of Supreme Court of Nsw, Equity Division

Legal Issues

  1. 1 ['What is the correct measure and date for assessment of damages for breach of a contract for sale of land?' 'Whether damages should be measured by the difference between the contract price and the market value at date of breach or by reference to a subsequent resale price.']

Ratio Decidendi

The measure of damages for breach of a contract for sale of land is the difference between the contract price and the market value at the date of breach. The primary judge erred by using the price on resale 13 months after breach without evidence that this was the value at breach date. In the absence of evidence of market value at the breach date, the judgment could not stand. The matter should be remitted for parties to adduce evidence of value as at the correct date.

Court Disposition

Appeal allowed; orders of primary judge set aside; matter remitted for further evidence; no order as to costs on appeal; costs of first instance to be determined by the trial judge.

Orders

  • ['(1) The appeal be allowed.' '(2) The orders made by Pembroke J on 12 August 2013 be set aside.' '(3) The matter be remitted to Pembroke J for the purpose of entertaining any application that a party may wish to make to adduce evidence as to the value of the land, the subject of the deed of option entered into on...