Despot v Registrar General of New South Wales & Ors Sky v Despot [2011] NSWSC 273

Despot v Registrar General of New South Wales & Ors Sky v Despot [2011] NSWSC 273

The Court found that the building contract was not validly executed as to date and amount, Sky Constructions was not licensed or insured as required by the Home Building Act 1989 at the relevant times and thus the contract was unenforceable, but the Court exercised its discretion to allow a quantum meruit claim in the amount determined. The power of attorney was held to be irrevocable, coupled with an interest, and Stelli Pty Ltd, the purchaser under the contract for sale, was an innocent party entitled to specific performance, provided the balance of the purchase price be paid to Mr Despot. No duty of care or contravention of the Fair Trading Act by the solicitor (Mr Carbone) was...

Jurisdiction
Australia
Judgment Date
31 March 2011
Procedural Posture
Principal Judgment / Final Judgment With Directions for Parties to Bring in Short Minutes and Address Outstanding Matters and Costs.
Outcome
Judgment for the plaintiff in part; declarations and orders as set out in the reasons, including the grant of specific performance to Stelli Pty Ltd upon payment of balance price, quantum meruit to Sky Constructions, and accounting for sale proceeds; directions to bring in short minutes and address outstanding...
Legal Topics
['fraud' 'specific Performance' 'quantum Meruit' 'power of Attorney' 'home Building Act 1989 Compliance' 'breach of Fiduciary Duty' 'sale of Land' 'ostensible Authority' 'breach of Statutory Duty']
['equity' 'contract' 'property Law' 'building and Construction'] ['fraud' 'specific Performance' 'quantum Meruit' 'power of Attorney' 'home Building Act 1989 Compliance' 'breach of Fiduciary Duty' 'sale of Land' 'ostensible Authority' 'breach of Statutory Duty']

Case Brief

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Procedural Posture

Principal Judgment / Final Judgment With Directions for Parties to Bring in Short Minutes and Address Outstanding Matters and Costs.

Legal Issues

  1. 1 ['Whether the building contract, deed of security and indemnity, power of attorney, and sale contract were vitiated by fraud' 'Whether the contract(s) were unenforceable for breach of the Home Building Act 1989' 'Whether Stelli is entitled to specific performance of the contract for sale' 'Entitlement and quantification of quantum meruit claim by Sky Constructions' 'Entitlements from accounting for sale proceeds' 'Fiduciary duties under power of attorney and breach thereof' 'Duty of care and Fair Trading Act claims against solicitor']

Ratio Decidendi

The Court found that the building contract was not validly executed as to date and amount, Sky Constructions was not licensed or insured as required by the Home Building Act 1989 at the relevant times and thus the contract was unenforceable, but the Court exercised its discretion to allow a quantum meruit claim in the amount determined. The power of attorney was held to be irrevocable, coupled with an interest, and Stelli Pty Ltd, the purchaser under the contract for sale, was an innocent party entitled to specific performance, provided the balance of the purchase price be paid to Mr Despot. No duty of care or contravention of the Fair Trading Act by the solicitor (Mr Carbone) was...

Court Disposition

Judgment for the plaintiff in part; declarations and orders as set out in the reasons, including the grant of specific performance to Stelli Pty Ltd upon payment of balance price, quantum meruit to Sky Constructions, and accounting for sale proceeds; directions to bring in short minutes and address outstanding...

Orders

  • ['Order dissolving injunction restraining registration of dealings over the properties.' 'Declaration that the contract dated 16 May 2008 between Despot and Stelli Pty Ltd is valid and binding.' 'Declaration that the transfer executed by Mr Maalouf as attorney is valid and registrable.' 'Order that Despot execute...