Strata Plan 67246 v Oaks Hotels & Resorts (NSW) No.1 Pty Ltd [2017] NSWSC 299

Strata Plan 67246 v Oaks Hotels & Resorts (NSW) No.1 Pty Ltd [2017] NSWSC 299

Although Oaks 1 admitted breach of the implied obligation under the Caretaker Agreement to comply with applicable planning instruments, the Owners failed to establish any loss attributable to the serviced apartments business or any compensable trespass loss. The appropriate relief was therefore a declaration of breach and nominal damages only, assessed at $20 per apartment for an average inventory of about 170 apartments, totalling $3,400; the Amended Summons was otherwise dismissed.

Jurisdiction
Australia
Judgment Date
27 March 2017
Procedural Posture
Contract and Trespass Proceedings / Principal Judgment After Hearing
Outcome
Declaration as to breach of contract; verdict for the plaintiff against the first defendant for nominal damages of $3,400; Amended Summons otherwise dismissed; costs orders made.
Legal Topics
['breach of Contract' 'nominal Damages' 'declaratory Relief' 'trespass to Common Property' 'offers of Compromise' 'costs']
['contract' 'civil Procedure'] ['breach of Contract' 'nominal Damages' 'declaratory Relief' 'trespass to Common Property' 'offers of Compromise' 'costs']

Case Brief

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Procedural Posture

Contract and Trespass Proceedings / Principal Judgment After Hearing

Legal Issues

  1. 1 ['Whether Oaks 1 breached the Caretaker Agreement by breaching, or permitting breach of, planning laws applicable to Maestri Towers.' "Whether the Owners established compensable loss from Oaks 1's breach of the Caretaker Agreement." 'Whether Oaks 2 was liable for trespass to common property by unauthorised use of common property.' 'Whether a declaration of breach should be made despite no prayer for that relief in the Summons.']

Ratio Decidendi

Although Oaks 1 admitted breach of the implied obligation under the Caretaker Agreement to comply with applicable planning instruments, the Owners failed to establish any loss attributable to the serviced apartments business or any compensable trespass loss. The appropriate relief was therefore a declaration of breach and nominal damages only, assessed at $20 per apartment for an average inventory of about 170 apartments, totalling $3,400; the Amended Summons was otherwise dismissed.

Court Disposition

Declaration as to breach of contract; verdict for the plaintiff against the first defendant for nominal damages of $3,400; Amended Summons otherwise dismissed; costs orders made.

Orders

  • ['The Court declares that on or around 13 July 2007 until on or around 29 August 2012, Oaks Hotels and Resorts (NSW) No 1 Pty Ltd breached the Caretaker Agreement with the plaintiff dated 19 February 2002 by breaching, or permitting the breach, of the planning laws of this State as they apply to the property known...