TAWANUI DEVELOPMENTS LIMITED V D M HARNETT AND J C MALCOLM AND ANOR HC PMN CIV-2008-454-949

TAWANUI DEVELOPMENTS LIMITED V D M HARNETT AND J C MALCOLM AND ANOR HC PMN CIV-2008-454-949

The plaintiff is entitled to loss-of-bargain damages of $40,000 (contract price less current market value $160,000), interest as damages at a reasonable commercial rate of 8% p.a. (total $29,106.73 to date of judgment), recoverable pre-proceedings legal/conveyancing costs of $12,111.66 as reliance/wasted expenditure, and commission/advertising costs of $7,600; the defendants' wilful or reckless non-compliance justifies an award of indemnity costs but their quantum must be supported by detailed invoices and is to be fixed following directed memoranda; costs on applications awarded on a Category 2B basis.

Citation
openlaw-cd7ebe61_9720_4d18_8913_6962c253a7f2.pdf
Parties
Plaintiff: TAWANUI DEVELOPMENTS LIMITED; First Defendant: D M HARNETT; First Defendant: J C MALCOLM; Second Defendant (guarantor): D M HARNETT
Court
High Court
Jurisdiction
New Zealand
Judgment Date
20 August 2010
Procedural Posture
Contract – Specific Performance, Cancellation and Damages Following Breach of Sale Agreement / Judgment on Damages and Costs After Cancellation of Agreement
Outcome
Judgment for plaintiff awarding damages and costs as set out; indemnity costs to be fixed after filing of detailed memoranda; existing summary judgment costs remain
Legal Topics
Specific Performance, Contractual Remedies Act 1979, Assessment of Damages (loss of Bargain), Interest as Damages, Recoverability of Legal/conveyancing Costs, Indemnity Costs and Enforcement
Contract Law Property Law Civil Procedure Insolvency Law Costs Law Specific Performance Contractual Remedies Act 1979 Assessment of Damages (loss of Bargain) +3 more

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Parties

TAWANUI DEVELOPMENTS LIMITED

Plaintiff

D M HARNETT

First Defendant

J C MALCOLM

First Defendant

D M HARNETT

Second Defendant (guarantor)

Procedural Posture

Contract – Specific Performance, Cancellation and Damages Following Breach of Sale Agreement / Judgment on Damages and Costs After Cancellation of Agreement

Legal Issues

  1. 1 Whether plaintiff entitled to damages after cancellation of Agreement for Sale and Purchase
  2. 2 Proper measure and date for assessment of damages (market value v forced sale)
  3. 3 Entitlement to and rate of interest as damages

Ratio Decidendi

The plaintiff is entitled to loss-of-bargain damages of $40,000 (contract price less current market value $160,000), interest as damages at a reasonable commercial rate of 8% p.a. (total $29,106.73 to date of judgment), recoverable pre-proceedings legal/conveyancing costs of $12,111.66 as reliance/wasted expenditure, and commission/advertising costs of $7,600; the defendants' wilful or reckless non-compliance justifies an award of indemnity costs but their quantum must be supported by detailed invoices and is to be fixed following directed memoranda; costs on applications awarded on a Category 2B basis.

Court Disposition

Judgment for plaintiff awarding damages and costs as set out; indemnity costs to be fixed after filing of detailed memoranda; existing summary judgment costs remain

Orders

  • Damages of $40,000.00 awarded to the plaintiff (difference between agreed price and current market value).
  • Interest as damages at 8% per annum awarded to the plaintiff amounting to $29,106.73 to date of judgment.