Arkbay Investments Pty Ltd (in liquidation) (receivers and managers appointed) v Tripod Funds Management Pty Ltd [2014] NSWSC 1003

Arkbay Investments Pty Ltd (in liquidation) (receivers and managers appointed) v Tripod Funds Management Pty Ltd [2014] NSWSC 1003

The defendant lodged a caveat without reasonable cause, as there was no honest or reasonable belief as to any caveatable interest, and this directly caused the plaintiffs quantifiable pecuniary loss because the purchaser would, on the balance of probabilities, have completed the contract during the relevant period but for the caveat.

Parties
First Plaintiff: Arkbay Investments Pty Ltd (in liquidation) (receivers and managers appointed); Second Plaintiff: McEvoy Street Alexandria Pty Ltd (in liquidation) (receivers and managers appointed); Third Plaintiff: Australian and New Zealand Banking Group Ltd; Defendant: Tripod Funds Management Pty Ltd
Jurisdiction
Australia
Judgment Date
29 July 2014
Procedural Posture
Application for Compensation Under S 74 P of the Real Property Act 1900 (nsw) / Judgment After Hearing
Outcome
Judgment for the plaintiffs; compensation awarded.
Legal Topics
Lodging of Caveat Without Reasonable Cause, Compensation Under Real Property Act 1900 (nsw) S 74 P, Causation of Loss in Caveat Proceedings
Real Property Lodging of Caveat Without Reasonable Cause Compensation Under Real Property Act 1900 (nsw) S 74 P Causation of Loss in Caveat Proceedings

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Parties

Arkbay Investments Pty Ltd (in liquidation) (receivers and managers appointed)

First Plaintiff

McEvoy Street Alexandria Pty Ltd (in liquidation) (receivers and managers appointed)

Second Plaintiff

Australian and New Zealand Banking Group Ltd

Third Plaintiff

Tripod Funds Management Pty Ltd

Defendant

Procedural Posture

Application for Compensation Under S 74 P of the Real Property Act 1900 (nsw) / Judgment After Hearing

Legal Issues

  1. 1 Whether the defendant lodged a caveat without reasonable cause
  2. 2 Whether the plaintiffs suffered pecuniary loss as a result of the caveat
  3. 3 Whether the purchaser would have completed settlement but for the lodging of the caveat

Ratio Decidendi

The defendant lodged a caveat without reasonable cause, as there was no honest or reasonable belief as to any caveatable interest, and this directly caused the plaintiffs quantifiable pecuniary loss because the purchaser would, on the balance of probabilities, have completed the contract during the relevant period but for the caveat.

Court Disposition

Judgment for the plaintiffs; compensation awarded.

Orders

  • Order pursuant to s 74P of the Real Property Act 1900 (NSW) that the defendant pay to the plaintiffs compensation in the amount of $40,815.53.
  • Order the defendant to pay the plaintiffs' costs of the proceedings.