Saba v Moit Projects [2014] NSWSC 1759

Saba v Moit Projects [2014] NSWSC 1759

Mr Chen handed over the signed but otherwise blank cheque form with authority for it to be filled up as required for payment of the deposit under the contract. Although Mr Chen communicated to Messrs Demian and Canavan a condition relating to acceptance of the Whitfield conditions, that condition was not communicated to Mrs Saba when the completed cheque was delivered to her and was therefore not effective under s 27 of the Cheques Act 1986 (Cth). The only effective condition was that the cheque not be presented for at least one business day, and that condition was satisfied. The plaintiff was therefore entitled to judgment for the amount of the cheque and interest.

Jurisdiction
Australia
Judgment Date
03 December 2014
Procedural Posture
Equity Division Commercial List Claim for the Value of a Cheque / Principal Judgment After Hearing
Outcome
Plaintiff succeeded against the second defendants; indemnity costs refused.
Legal Topics
['cheques' 'inchoate Instruments' 'authority to Fill Up a Cheque' 'conditional Delivery of a Cheque' 'offer of Compromise' 'calderbank Offer' 'indemnity Costs']
['banking and Finance' 'procedure' 'costs'] ['cheques' 'inchoate Instruments' 'authority to Fill Up a Cheque' 'conditional Delivery of a Cheque' 'offer of Compromise' 'calderbank Offer' 'indemnity Costs']

Case Brief

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Procedural Posture

Equity Division Commercial List Claim for the Value of a Cheque / Principal Judgment After Hearing

Legal Issues

  1. 1 ['Whether the signed but otherwise blank cheque form was filled up with the authority of the second defendants.' 'Whether the cheque was delivered conditionally, and if so, what the conditions were.' 'Whether any conditions were satisfied before the cheque was presented.' 'Whether the plaintiff should receive indemnity costs based on an offer of compromise and a Calderbank offer.']

Ratio Decidendi

Mr Chen handed over the signed but otherwise blank cheque form with authority for it to be filled up as required for payment of the deposit under the contract. Although Mr Chen communicated to Messrs Demian and Canavan a condition relating to acceptance of the Whitfield conditions, that condition was not communicated to Mrs Saba when the completed cheque was delivered to her and was therefore not effective under s 27 of the Cheques Act 1986 (Cth). The only effective condition was that the cheque not be presented for at least one business day, and that condition was satisfied. The plaintiff was therefore entitled to judgment for the amount of the cheque and interest.

Court Disposition

Plaintiff succeeded against the second defendants; indemnity costs refused.

Orders

  • ['Plaintiff to have judgment against second defendants for $260,000 and interest.' "Second defendants to pay plaintiff's costs on the ordinary basis." 'The parties were to submit an agreed form of order as to calculation of interest by 12 noon on 8 December 2014.' 'The exhibits are to be returned once the reasons...