Egan v Geraghty [1994] QCA 8
IN THE COURT OF APPEAL [1994] QCA 008
SUPREME COURT OF QUEENSLAND Appeal No. 138 of 1993
Before The President
Mr Justice Pincus
Mr Justice Williams
[Egan v. Geraghty]
BETWEEN:
JILLIAN ADELAIDE EGAN
(Plaintiff) Respondent
- and -
CARMEL THERESA GERAGHTY
(Defendant) Appellant
REASONS FOR JUDGMENT - THE PRESIDENT
Judgment delivered 16/02/94
This is an appeal from a judgment in the District Court
at Southport given on 25 June 1993. The trial judge held
that the respondent had lawfully terminated a contract for
the sale of a house property made between the parties on 17
February 1986 by a letter dated 18 October 1989. The
appellant was the purchaser of the property and the
respondent the vendor, although at all material times the
registered proprietor according to the certificate of title
was Albert Edward Sheppard, who had died on 27 July 1985.
By his last will, dated 1 March 1984, the deceased had
appointed the respondent as his executrix and major
beneficiary. These circumstances were known to the parties,
and clauses 30 and 35 of the contract respectively provided:
"30. The parties hereto acknowledge that the
relative Certificate of Title is still
registered in the name of the deceased Albert
Edward Sheppard. The Vendor covenants that
she will use her best endeavours to become
registered as proprietor of the subject land
as soon as is reasonably practicable. In the
event that the Vendor is not so registered as
proprietor on or before the date for
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completion [4 March 1986], the parties hereto
agree that the date for completion shall be
extended until the expiration of the period
of fourteen (14) days notice in writing for
the Vendor to the purchaser that the Vendor
is so registered as proprietor. The Vendor
shall keep the Purchaser fully informed as to
the progress of the Vendor obtaining a grant
of Probate of the will of the said deceased
and becoming registered as proprietor
aforesaid.
...
35. This contract is conditional upon the Vendor
obtaining a grant of Probate of the will of
the Registered Proprietor of the subject land
in her favour on or before 1 June 1986. In
the event that such grant is not so obtained
either party hereto may cancel this Contract
and upon such cancellation all monies paid
hereunder on account of the purchase price
(other than rent under Clause 32 hereof)
shall be refunded in full to the Purchaser
and this Contract shall be thereby
discharged."
Prior to the signature of the contract, there had been
communications between the respondent's solicitors and the
solicitors for one Donald Burningham, who on 3 March 1986
filed a caveat in the Supreme Court against the grant of
probate in respect of the will dated 1 March 1984.
Burningham claimed an interest under an earlier will, and
asserted that the deceased lacked testamentary capacity when
he made the will dated 1 March 1984 and that the respondent
had exerted undue influence.
A writ claiming probate in solemn form was issued
against Burningham on 8 January 1987, and a Statement of
Claim and an Affidavit of Scripts were served on 12 February
1987. Burningham's Defence and Counterclaim was delivered
on 7 April 1987 and his Affidavit of Scripts was served on
24 April 1987. The respondent's Reply and Answer and a
Notice requiring discovery were served on 19 May 1987. On
22 May 1987, Burningham's Notice requiring discovery was
served. The respondent's affidavit of documents was served
on 23 June 1987 and Burningham's affidavit of documents was
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3
served on 10 August 1987.
There is no suggestion that the respondent had not kept
the appellant "fully informed as to the progress of the
[respondent] obtaining a grant of Probate ...", as required
by clause 30 [of the contract] and there were agreed
extensions of the date specified by condition 35. On 26
November 1987, the parties substituted 1 June 1989 as the
date "on or before" which the respondent was to obtain
probate, failing which either party could "cancel" the
contract. Despite the absence of a plea of waiver or
estoppel, events up to 26 November 1987 have no ongoing
relevance in view of the parties' further extension of time
at that point knowing what had occurred. However, by clause
30 of the contract, the respondent was required to "use her
best endeavours" to obtain probate and "become registered as
proprietor ... as soon as is reasonably practicable." If
probate had not been obtained by 1 June 1989 despite the
respondent's "best endeavours", then the contract could be
cancelled. Implicitly, the parties seem to have assumed
that 18 months was sufficient to conclude the probate
action, which had already proceeded to the stage of
discovery. In fact, it took slightly more than twice that
length of time.
The respondent did not obtain probate until 10 December
1990. Meanwhile, the respondent purported to "cancel" the
contract by letter dated 18 October 1989. It was accepted
that she could only have effectually done so if she was
not, at the time, in breach of her obligation to "use her
best endeavours to obtain probate .. as soon as is
reasonably practicable."
There were two bases upon which the respondent
substantially placed her case.
One proposition was that the respondent (i) "was
required to do no more than she could reasonably do in all
of the circumstances to achieve the contractual objective"
and (ii) had done all that was required of her by retaining
apparently competent solicitors and counsel and was not
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4
responsible for any delays or errors by them which increased
the time needed to obtain probate. The first part of this
submission is substantially correct: "... an obligation to
use best endeavours does not require the person who
undertakes the obligation to go beyond the bounds of reason;
he is obliged to do all he reasonably can in the
circumstances to achieve the contractual object, but no
more." Hospital Products Ltd v. United States Surgical
Corporation (1984) 156 CLR 41, 64 per Gibbs CJ; see also 91-
92 per Mason J; 143-144 per Dawson J; Hawkins v. Pender Bros
Pty Ltd (1990) 1 Qd R 135, 151-152. However, so far as the
second part of the submission is concerned, the better view
is that, as between the appellant and the respondent, she is
responsible for the conduct of her lawyers: cf Commercial
and General Acceptance Ltd v. Nixon (1981) 56 ALJR 130;
McKenna v. McKenna (1984) VR 665. She would have breached
her obligation to use her "best endeavours" if those
representing her failed to prosecute the probate action
diligently.
The second proposition for the respondent was that, in
any event, it did not appear that it was because of the
failure of the respondent to use her "best endeavours", that
probate was not obtained by 1 June 1989. During the course
of argument, two approaches to this second issue were
debated. On one view, the question to be asked is whether
the conduct of the respondent was the sole, or at least the
dominant, cause why probate had not been obtained by 1 June
1989. On an alternative view, the question is whether the
conduct of the respondent was a significant contributing
factor: cf Gange v. Sullivan (1986) 116 CLR 418; Perri v.
Coolangatta Investments Pty Ltd (1982) 149 CLR 537, 567.
Some support for the former view may, perhaps, be found
in dicta in Nina's Bar Bistro Pty Ltd v. M.B.E. Corporation
Pty Ltd (1984) 3 NSWLR 613. See also Italo-Australian Club
Ltd v. National Australia Bank Ltd (1989) NSW Conv.R. 55-
461. However, those cases do not authoritatively establish
that it must be shown that the respondent's breach was the
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5
sole cause of her failure to obtain probate by the agreed
date. Rather, a "but for" test should be adopted. Would
probate probably been obtained by 1 June 1989 "but for" the
respondent's omission to use her "best endeavours" to do so;
or, in other words, if she had used her "best endeavours",
is it more probable than not that probate would have been
obtained by that date?
A practical assessment of what could have been
achieved is called for. Four points in particular merit
emphasis. Firstly, it was inevitable that some time would
be taken by the respondent's lawyers, whoever they were:
there is no doubt but that competent, experienced lawyers
would have had other commitments, making other demands on
their time. Secondly, changing lawyers because of the time
being taken would have been a risky and expensive course by
no means certain to produce a reduction in the time needed:
the new lawyers would have had to familiarise themselves
with the dispute from the beginning, and experience suggests
that, while there might have been an initial flurry of
activity, they also would have taken some time for the
various steps required. Thirdly, neither party to
litigation is fully able to control its course and how long
is taken: to some extent each party must react to the
actions of the other, who may be dilatory or obstructive
and, to a limited extent, the parties are also affected by
the Court and its processes. Fourthly, in assessing
reasonableness, it is appropriate to take into account the
cost of legal proceedings in determining whether it was
reasonable to allow Burningham time rather than make
applications to the Court.
During the crucial period from 26 November 1987 to 1
June 1989, there were frequent communications between the
respondent (or her husband) and her solicitor, many of which
seem to have been requests for information and/or action in
the proceeding in which probate in solemn form was claimed.
In addition, according to a chronology with which the Court
was provided, the following took place:
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6
Telephone attendance on Mr D Boughen of Counsel o.h.c.
regarding possible conflict of D Garrick, also
regarding insertion of documents, he suggested after
inspection of documents that a brief be delivered re
Interrogatories, also that we should list all documents
in respect of which we claim privilege, then we submit
Certificate of Readiness, when signed and returned we
file Entry of Trial or Notice of Trial and then goes
into callover list 8.2.88
Attending on mutual inspection of documents at office
of Defendant's solicitors in Brisbane and requesting
copies of certain of their documents 29.2.88
Perusing letter from Defendant's solicitors enclosing
copies of documents requested at time of inspection and
advising they obtaining instructions as to whether or
not letter from Dr Agnew is privileged or not 8.3.88
Mrs Egan makes written complaint about delay to
Queensland Law Society Late April/Early May 1988
Perusing letter from Defendant's solicitors claiming
privilege in respect of the letter sent by Dr Agnew to
Welsh solicitors 20.5.88
Drawing and engrossing draft letter to Defendant's
solicitors in reply Undated
Brief to Mr D Boughen of Counsel to settle draft letter
to Defendant's solicitors regarding privileged matters,
draft letter to Defendant's solicitors requiring
further discovery in respect of those documents in
respect of which the Defendant claims privilege, draft
Interrogatories, advise whether we could require the
Defendant to sign a Certificate of Readiness and an
application for speedy trial at that stage 28.6.88
Telephone attendance on Mr D Boughen of Counsel
regarding various matters referred to in brief, when he
advised that if he considers Interrogatories are
appropriate then cannot request Certificate of
Readiness to be signed 5.8.88
Telephone attendance on Counsel's Chambers - he in
court - left message that matter becoming urgent 20.8.88
-- 6 of 47 --
7
Telephone attendance on Mr D Boughen of Counsel - when
advised he in conference - left message for him to call
27.9.88
Telephone attendance on Mr D Boughen of Counsel
regarding possible conference with client and husband
when he advised that he is flying to Melbourne this
Friday but could hold conference in morning, also
regarding matters referred to in outstanding Brief,
when he advised he will attend to 4.11.88
Letter to client advising of details of conference
arranged with Counsel and reporting as to position
generally 4.11.88
Attending Mr D Boughen of Counsel in conference with
client and her husband, discussing various matters
regarding testamentary capacity and evidence of various
witnesses (including Dr Agnew); regarding request that
Defendant list documents they claim privilege on; when
Counsel has decided whether or not Interrogatories are
appropriate then appropriate to consider serving
Certificate of Readiness; when Counsel advised as to
possible time frame for matter to go to trial; we to
up-date our Brief by forwarding copies of most recent
correspondence; and generally 11.11.88
Letter from Garrick & Co to Defendant's solicitors
regarding items claimed as privileged requiring that
the Defendant list those item 6.12.88
Letter from Garrick & Co to Defendant's solicitors
listing those documents in respect of which privilege
is claimed and relating to documents in Plaintiff's
Affidavit of Scripts 6.12.88
Letter to Dr Agnew requesting information in respect of
numerous matters 8.12.88
Letter to Blue Nursing Service requesting advice
regarding their testing of the deceased's blood-sugar
levels, etc 9.12.88
Letter from Garrick & Co to Defendant's solicitors
advising our (lengthy) letter of 6.12.88 replied to
previous correspondence and requesting their reply to
our other letter of 6.12.88 13.12.88
-- 7 of 47 --
8
Perusing letter from Defendant's solicitors objecting
to our request to list those documents in respect of
which they claim privilege and advising that they
consider certain of our documents discoverable
notwithstanding our claim of privilege 13.12.88
Letter from Garrick & Co to Defendant's solicitors
advising the contents of their letter of 13.12.88
referred to Counsel for consideration 15.12.88
Letter from Garrick & Co to Mr D Boughen of Counsel
enclosing copy of Defendant's solicitors letter of
13.12.88 and requesting his advice 15.12.88
Perusing letter from client 13.02.89
Telephone attendance on Counsel's chambers 14.02.89
Telephone attendance on Mr D Boughen of Counsel
advising date of Chamber Application and whether he
available to appear and discussing, also advising he
has yet to decide whether or not to serve
Interrogatories about the Defendant's allegations
concerning capacity, duress, etc. also about the
Defendant's refusal to list privileged documents, when
he requested that brief be returned so that he can
consider and also discussing whether the matter is
otherwise ready for trial 1.3.89
Perusing letter from solicitors for Blue Nursing
Service advising it not policy of the Blue Nursing
Service to provide information of the nature we had
requested 9.3.89
Draft Interrogatories delivered by Mr D Boughen of
Counsel 10.3.89
Engrossing Interrogatories 10.3.89
Interrogatories dated 10.3.89
Letter to town agents enclosing Interrogatories for
service on the Defendant's solicitors 10.3.89
Telephone attendance on town agents when they advised
-- 8 of 47 --
9
Interrogatories served 13.3.89 13.3.89
Perusing letter from town agents in confirmation dated
14.3.89
Perusing letter from Dr Agnew advising that he has been
able to locate a copy of his letter to Edwards &
Partners, and willing to make himself available for
interview on certain conditions 15.3.89
Telephone attendance on client when she enquired
whether we had received any reply from Defendant's
solicitors and when advised she instructed that we
write to them and enquire when we can anticipate
answers to Interrogatories also when she advised she
had received a letter and consent form from Geraghty
2.5.89
Letter from Garrick & Co to Defendant's solicitors
requesting advice as to when we can expect to receive
Answers to Interrogatories, also requesting that they
arrange for an inspection of our documents, and
advising that our client anxious for matter to proceed
to trial and whether they would be prepared to sign a
Certificate of Readiness and in view of the fact that
some witnesses are elderly would they object to a
request for speedy trial 2.5.89
Perusing letter from Defendant's solicitors advising
they expect to provide answers to Interrogatories
within next month, that they want response to earlier
letter regarding whether we will make available
documents in respect of which we claim privilege before
they will consider inspection of documents, and they
not prepared to sign Certificate of Readiness for trial
at this time but obtaining formal instructions
regarding eventual application for speedy trial 9.5.89
Letter to D Boughen of Counsel enclosing copies of
appropriate correspondence with Defendant's solicitors
regarding discovery and inspection of privileged
documents and requesting his advices 24.5.89
Although there were comparatively brief periods when
there was considerable activity, eg., December 1988 and
March 1989, there were other times marked by little or no
activity. For example, there was not much achieved or even
attempted in the first 12 months, from the end of November
1987 to the end of November 1988, and there was no activity
-- 9 of 47 --
10
at all in January, February or April, 1989. There seems
little doubt but that, if the action for probate in solemn
form had been prosecuted diligently, as it should have
been, the position reached by the beginning by June 1989
could have been reached months earlier, probably by the end
of June, or perhaps July, 1988.
It is necessary to look also at the subsequent period
to see what was done and how long was taken and to assess
the period which should have been necessary. As earlier
noted, the respondent obtained probate on 10 December 1990.
Between 1 June 1989 and 10 December 1990, [a little over 18
months], the following steps were taken in addition to a
number of telephone communications between the respondent
and her solicitors:
Telephone attendance on Mr D Boughen of Counsel
regarding discovery question when he advised that Will
file discoverable but not the estate file, in any event
there is nothing on the Will file which would tend to
support their case, also "diary notes" are probably
discoverable as they are instructions given by the
Testator, however we are not required to discover
anything after he died or since proceedings started
(i.e., diary notes, etc.) but we to fax copy of letter
setting out list of documents in respect of which we
claim privilege so that he can check what the documents
comprise and discussing generally 5.6.89
*Fax to Mr D Boughen of Counsel with copy letter of
Garrick & Co to Defendant's Solicitors dated 6.12.1988
listing documents 5.6.89
*Telephone attendance on Mr D Boughen of Counsel when
he advised that all documents set out in the list are
discoverable with the exception of the last document
listed 5.6.89
*Perusing letter of report from Town Agents advising
Order settled and served on Defendant's Solicitors and
Registrar's appointment made for the 25.7.89 when they
will file Affidavit of Search and draft Grant 23.6.89
Letter from Garrick & Co to Defendant's Solicitors
noting failure to forward sworn Answers to
Interrogatories despite assurances and advising that
unless same received by 13.7.89 we intend to bring
-- 10 of 47 --
11
action to force compliance as our client most concerned
at the delay 28.6.89
Further letter from Garrick & Co to Defendant's
Solicitors advising we have instructions to allow
inspection of the listed documents set out in our
letter of 6.12.88 and requesting that they make
arrangements for inspection 28.6.89
Perusing letter from Defendant's Solicitor in reply to
various matters raised in recent correspondence,
advising settled Answers in Wales for swearing and
suggesting date and time for inspection of documents
4.7.89
Telephone attendance on Defendant's Solicitors
regarding date, time and place for inspection of
documents 10.7.89
Attending representative of Defendant's Solicitors in
conference giving inspection of documents and noting
photocopies required 11.7.89
Perusing letter from Defendant's Solicitors setting out
list of copy documents they require 17.7.89
Defendant's sworn Answers to Interrogatories of
23.6.1989 served on Town Agents 20.7.89
*Perusing letter from Town Agents enclosing Defendants
Answers to Interrogatories 21.7.89
*Brief to Mr D Boughen of Counsel to consider
Defendant's Answers to Interrogatories and to advise
what further steps should be taken prior to signing a
Certificate of Readiness, etc. 28.7.89
Letter from Garrick & Co to Defendant's Solicitors
enclosing copies of documents requested as a result of
inspection of the Plaintiff's documents and commenting
with regard to an earlier Will not in the Plaintiff's
custody or control 31.7.89
*Letter from Garrick & Co to Town Agents requesting
advice as to outcome of search, etc. 31.7.89
-- 11 of 47 --
12
*Letter from Garrick & Co to Public Trustee setting out
short history of litigation and requesting advice as to
whether Public Trustee would be prepared to file
earlier Will of the deceased in the Court 1.8.89
*Telephone attendance on Counsel's Chambers requesting
that he return my call 1.8.89
*Telephone attendance on Mr D Boughen of Counsel
regarding Answer to Interrogatories when he advised he
had sent his opinion and discussing generally and also
when he advised that it is Defendant's obligation to
propound earlier Will, not ours and discussing 2.8.89
*Memorandum of Advice delivered by Mr D Boughen of
Counsel regarding Defendant's refusal to answer certain
Interrogatories, etc. when he advised he would be away
fro 2 weeks 2.8.89
Perusing letter from Defendant's Solicitors
acknowledging receipt of copy documents and pointing
out that D Garrick will be a significance and whether
we had considered appropriateness of firm continuing to
act in the action 3.8.89
*Telephone attendance on client discussing advise
received from Counsel and whether we consider it
appropriate to push for proper answers or accept their
unsatisfactory answers and instead submit Certificate
of Readiness 4.9.89
Letter from Garrick & Co to Defendant's Solicitors
advising that we have received Counsel's advice to make
an application for further and better answers to
certain Interrogatories and seeking advice as to
whether their client is prepared to give further and
better answers without the necessity of a formal
application 6.9.89
Further letter from Garrick & Co to Defendant's
Solicitors in relation to possible conflict of interest
and advising Counsel's opinion had been sought and
that our firm would not be the Solicitors on the record
when the matter went to trial, and enclosing
Certificate of Readiness for Trial for execution and
return 6.9.89
Drawing and engrossing Certificate of Readiness for
-- 12 of 47 --
13
Trial 6.9.89
Perusing letter from Defendant's Solicitors stating
that they are currently considering our request for
further and better answers to Interrogatories and
seeking Counsel's opinion and in meantime do not
consider it appropriate to sign Certificate of
Readiness 8.9.89
Perusing further letter from the Defendant's Solicitors
advising that in their view certain of the
Interrogatories are misconceived, and that with regard
to certain others are matters of evidence and therefore
they do not believe further and better answers are
necessary and any contemplated application will be
strenuously defended 11.9.89
Telephone attendance on Counsel's Chambers leaving
message to call 25.9.89
*Further telephone attendance on Counsel's Chambers
when advised that Counsel on a four day trial and will
not be back until next week when she will get him to
call 28.9.89
Perusing letter from Defendant's Solicitors enquiring
whether Plaintiff intends to bring threatened
proceedings and if not if they receive our assurance
that Plaintiff not intending to bring any other
interlocutory applications then they prepared to sign
Certificate of Readiness 3.10.89
*Telephone attendance on Mr D Boughen of Counsel ( he
had been on 2 week building dispute) advising contents
of correspondence with Defendant's Solicitors and
discussing he suggested we send brief to him and he
will consider, also regarding possible conflict of
interest when he recommended that appropriate time to
change Solicitors would be when a brief to advise on
evidence had been delivered, and discussing problems of
interviewing witnesses with similar evidence to that of
D Garrick and discussing 9.10.89
*Further brief to Mr D Boughen of Counsel to consider
the further correspondence and to advise whether an
appropriate application should be made, etc. 19.10.89
*Telephone attendance on Counsel's Chambers when
-- 13 of 47 --
14
advised he in Court - left message to call 1.11.89
*Telephone attendance on Mr D Boughen of Counsel when
he advised that he had not formed a view with regard to
answers to Interrogatories and he will consider and do
a brief advice but he thought it would be of assistance
to have answers, that client wants matter set down for
trial if no application recommended, also re change of
Solicitor and discussing possible firms by way of
suggestion 1.11.89
*Telephone attendance on Counsel's Chambers requesting
that he call [numerous telephone messages left] 22.11.89
*Telephone attendance on Mr D Boughen of Counsel
advising client most anxious about delay and requesting
that he consider our Brief and reply without delay,
when he advised that he is also considering the
Geraghty matter and requested advice as to current
U.C.V. of Main Beach property as it might be possible
to swing this matter into the District Court
jurisdiction in view of the new legislation, when we
advised that information would already be in his brief
in relation to the application for administration
pendente lite but we would look up the information and
ring him back 23.11.89
*Telephone attendance on Counsel advising U.C.V. of
Main Beach property 23.11.89
*Telephone attendance on Mr D Boughen of Counsel when
we advised our client pressing us for answers when he
advised he hoped to have advice done by the end of the
week, that his present inclination was to forget about
further answers to interrogatories but he still wants
to consider properly, also he looking at question of
whether matter could be transferred to the District
Court jurisdiction 4.12.89
*Telephone attendance on Mr D Boughen of Counsel when
he advised he had sent Advice on 6.12.89 (not yet
received) when we agreed if not received soon to notify
him and he will fax a copy to us 11.12.89
*Telephone attendance on Counsel's Chambers advising
Advice still not received by post and requesting that
copy be faxed to us 12.12.89
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15
*Perusing faxed copy of Memorandum of Advice dated
6.12.89 delivered by Mr D Boughen of Counsel regarding
an application for further and better answers to
Interrogatories, and whether it appropriate to transfer
matter to jurisdiction of the District Court (which he
considered exceeded the jurisdictional limits of the
expanded jurisdiction of the District Court) 12.12.89
*Letter from Garrick & Co to client enclosing copy
faxed Memorandum of Advice and requesting her formal
instructions 13.12.89
*Telephone attendance on Mr D Boughen of Counsel when
he advised he only returned to Chambers today after the
Christmas Court vacation, when we advised we had
received instructions to proceed with application re
answers to interrogatories, when he advised he does not
need a further Brief but will go ahead and draw up the
appropriate documents and send to us 29.1.90
*Perusing faxed Summons and draft Affidavit in support
received from Mr D Boughen of Counsel 30.1.90
*Telephone attendance on Counsel's Chambers advising
that contemplated return date of Chamber Application of
2.2.90 inserted by Counsel did not allow for the fact
that we are country practitioners and would not give
Defendant's Solicitors sufficient time after service of
documents on them to consider their position, when they
advised next available date Counsel would be available
30.1.90
Engrossing Summons and Affidavit in Support Unknown
Attending on swearing of Affidavit in Support 6.2.90
*Letter to Town Agents enclosing Summons and Affidavit
with instructions to file and serve 7.2.90
Summons (returnable on 15.2.90) that Defendant answer
Interrogatories (enumerated) and pay the Plaintiff's
costs of the Application - dated 9.2.90
Affidavit of D.G. Garrick in support - sworn 6.2.90
*Telephone attendance on Town Agents when they advised
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16
that matter has been set down for 15.2.90 and that this
date is suitable to Mr Boughen of Counsel and they will
serve Defendant's Solicitors with copies of documents
9.2.90
*Perusing letter of report from Town Agents advising
that documents filed and served and return date of
summons, and that copies of documents delivered direct
to Mr Boughen of Counsel 13.2.90
*Brief to Mr D Boughen of Counsel to Appeal on Summons
for further and better answers to Interrogatories
13.2.90
Attending on Chamber Application in Supreme Court,
Brisbane before Master Horton QC instructing Mr D
Boughen of Counsel when Defendant appeared (Cannan &
Peterson instructing Mr Michael Bland of Counsel) and
opposed the Plaintiff's application, when order made
that the Defendant answer most of the Interrogatories
we sought to have answered but no order made as to
costs (because each would cancel out the other) 15.2.90
Perusing Affidavit of Brett St Clair Bolton sworn
14.2.90 (filed by leave on 15.2.90) served on us just
prior to hearing (11.30 am) 15.2.90
Order of Master Horton QC that the Defendant answer
certain Interrogatories (enumerated) on or before the
15.3.90, no order as to costs 15.2.90
*Conference with Mr D Boughen of Counsel in his
Chambers at conclusion of Chamber Application
discussing next step in proceedings (after Defendant
has properly answered in terms of the Order) and that
Certificate of Readiness for trial should then be
considered, also discussing when file should be handed
on to other Solicitors and discussing pros and cons of
various other firms of Solicitors, but that file should
be retained pending (1) taking out of today's order (2)
the Defendant has filed and served his sworn further
and better answers; and (3) Counsel has considered
those Answers and we have taken any further action he
recommends as a result of the contents of those answers
15.2.90
*Telephone attendance on Mr D Boughen of counsel
regarding content of draft Order 16.2.90
Drawing and engrossing draft Order 22.2.90
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17
*Letter from Garrick & Co to Town Agents enclosing
draft Order for settling and service 22.2.90
*Telephone attendance on Town Agents when the advised
settled Order now available and arranging for service
on Defendant's Solicitors 1.3.90
*Perusing letter from Brisbane Agents enclosing sealed
copy Order and advising details of service 8.3.90
Perusing letter from Defendant's Solicitors enclosing
copy of sworn Answers to Interrogatories with advice
that original has been posted from U.K. and is expected
in next few days 13.3.90
Defendant's Further Answers to Interrogatories in
accordance with Order of Master Horton Q made on
15.2.90 - sworn 9.3.90
*Perusing fax report from Town Agents attaching copy of
Defendant's Further Answers to Interrogatories served
on 15.3.90
Perusing "Without Prejudice" letter from Defendant's
solicitors advising that they had been instructed to
explore the possibility of settlement of the action and
advising they prepared to allow Probate of will
propounded by us on the basis that he receive 50% of
the estate assets with each party to bear their own
costs to date of the proceedings, but irrespective of
our reply, they have been instructed to require an
updated list of assets of the estate 15.3.90
*Fax letter to Mr D Boughen of Counsel enclosing recent
correspondence from Defendant's solicitors as well as
Defendant's Further and Better Answers and requesting
Counsel to consider and advise 22.3.90
*Telephone attendance on Counsel's Chambers when
advised that he away from Chambers all week but our fax
has been received and will be drawn to his attention
upon his return 23.3.90
*Telephone attendance on Counsel's Chambers leaving
message for him to call when he returns 28.3.90
-- 17 of 47 --
18
*Telephone attendance on Mr D Boughen of Counsel
discussing unsatisfactory nature of Defendant's Answers
and discussing matter in detail, when he stated he had
returned Brief and would therefore need copies of
certain documents (to be faxed to him) so he could
consider matter, also regarding offer of settlement and
discussing 28.3.90
*Faxed letter to Mr D Boughen of Counsel enclosing
copies of certain documents 29.3.90
*Perusing fax from Mr D Boughen of Counsel attaching
settled draft letter to be sent to Defendant's
Solicitors 3.4.90
Letter from Garrick & Co to Defendant's Solicitors (as
per Counsel's draft) requiring proper answers within 14
days then we will make an application for better
particulars, or alternatively that certain paragraphs
of the Defence and Counterclaim be struck out 4.4.90
Fax sheet to Defendant's Solicitors attaching letter
4.4.90
Further letter "W.P." to Defendant's Solicitors
advising their offer of settlement being referred to
client for instructions and we will reply when we have
her instructions 4.4.90
Fax sheet to Defendant's Solicitors attaching "W.P."
letter 4.4.90
Perusing faxed letter from Defendant's Solicitors
advising they disagree with our contention about their
client's obligation application by us will be strongly
opposed 5.4.90
*Fax letter to Mr D Boughen of Counsel enclosing copies
of most recent correspondence and requesting advice as
to what further steps should be taken 5.4.90
*Attending client in conference advising up to date
position of matter and discussing 5.4.90
*Perusing faxed letter from Mr D Boughen of Counsel
advising Defendant's failure to properly answer has to
-- 18 of 47 --
19
be pressed, and attaching settled Request for Further
and Better Particulars to be delivered 12.4.90
Engrossing Request for Further and Better Particulars
Unknown
Request for Further and Better Particulars of Defence
and Counter-claim - dated 19.4.90
*Letter to Town Agents enclosing Request for filing and
service 20.4.90
*Perusing letter of report from Town Agents reporting
Request served and delivered 24.4.90 24.4.90
*Letter from Garrick & Co to client enclosing copy
letter from Counsel and reporting 24.4.90
Perusing letter from Defendant's Solicitors relating to
Request for Further and Better Particulars and advising
that in their view the Request enquires into matters of
evidence and therefore objectionable and their client
does not intend to provide the requested particulars
26.4.90
*Faxed letter to Mr D Boughen of Counsel enclosing copy
of letter from Defendant's Solicitors dated 26.4.90 and
requesting that he consider and advise 27.4.90
*Telephone attendance on Mr D Boughen of Counsel when
he advised he had been out of Chambers a lot,
discussing correspondence received when he advised he
will now proceed to draw application and affidavit in
support 28.5.90
*Perusing faxed letter dated 28.5.90 draft Summons and
Affidavit from Mr D Boughen of Counsel - received
29.5.90
Engrossing Summons and Affidavit in Support 29.5.90
Attending on swearing of Affidavit in Support of
Summons 29.5.90
*Letter from Garrick & Co to Town Agents enclosing
documents for filing and service urgently
-- 19 of 47 --
20
29.5.90
*Telephone attendance on Town Agents when they advised
date proposed by Counsel is a public holiday and
arranging for them to list before Master Horton QC on a
date suitable to Counsel 30.5.90
*Telephone attendance on Mr D Boughen of Counsel about
suitable date for setting down of matter before Master
Horton 30.5.90
Summons that certain paragraphs of the Defendant's
Defence and Counterclaim be struck out, or
alternatively that Defendant provide further and better
answers to certain Interrogatories, or alternatively
that the Defendant provide further and better
particulars of his Defence and Counterclaim, and that
the Defendant pay the Plaintiff's costs of the
application to be taxed (returnable on 12.6.90) 31.5.90
Affidavit of D G Garrick in support of Affidavit sworn
29.5.90
*Telephone attendance on Town Agents when they advised
Master Horton not taking any further matters on his
list so set matter down for 12.6.90 when Counsel is
available 31.5.90
*Perusing letter from Town Agents reporting filing and
service of documents 31.5.90
*Brief to Mr D Boughen of Counsel to appear on Summons
relating to Defendant's Further Answers to
Interrogatories (hearing: 12.6.90) 7.6.90
*Telephone attendance on Counsel's Chambers arranging
to meet Counsel to instruct 8.6.90
Attending at Supreme Court, Brisbane instructing Mr D
Boughen of Counsel on Chamber application before Master
Horton Q when order made substantially in terms of
application sought 12.6.90
Order of Master Horton Q that on or before 3.7.90 the
Defendant file and serve further and better answers to
Interrogatories (enumerated) and that the Defendant pay
-- 20 of 47 --
21
the Plaintiff's costs of the Summons to be taxed and
that the Summons be adjourned to a date to be fixed to
be brought on by giving 5 clear days notice 12.6.90
Drawing and engrossing draft Order of 12.6.90 Unknown
*Letter to Town Agents enclosing draft Order for
settling and subsequent service 15.6.90
Notice of Appeal by the Defendant (for hearing on
20.6.90) - dated 15.6.90
*Perusing faxed letter from Town Agents attaching
Notice of Appeal served on them by the Defendant's
Solicitors on the 15.6.90 18.6.90
*Perusing letter from Town Agents enclosing original
Notice of Appeal and advising draft Order lodged with
Supreme Court for settling 18.6.90
*Letter to client reporting and enclosing copy of
Notice of Appeal and advising 18.6.90
*Telephone attendance with Mr D Boughen of Counsel
advising of service of Notice of Appeal returnable on
20.6.90, when he advised that he not available on that
date and that we should approach Defendant's Solicitors
for the matter to be adjourned by consent to the
following week, if they agree matter can be adjourned
on the papers, when he advised that the Appellant
should exhibit a copy of Master Horton's Reasons for
Judgment but if they do not intend to do so then we
should do so ourselves 18.6.90
Telephone attendance on Defendant's Solicitors advising
Counsel unavailable and requesting adjournment for 1
week, and requesting advice as to what material they
intend to file, when advised that they would speak to
their Counsel and advise
[PAGE MISSING]
*Telephone attendance on Master's Clerk's office when
they advise Clerk in Court but copy of Reasons would
have been put on the file and would be available by
search 27.6.90
-- 21 of 47 --
22
*Telephone attendance on Town Agents requesting that
they search file and obtain copy of Master's Reasons
for hearing tomorrow and that they fax copy direct to
Counsel 27.6.90
*Perusing fax from Town Agents enclosing copy of
Master's Reasons and confirming copy sent direct to
Counsel 27.6.90
Extempore Reasons for Judgment of Master Horton QC
delivered 12.6.90 27.6.90
Attending at Supreme Court, Brisbane instructing Mr D
Boughen of Counsel on appeal before Mr Justice Byrne
(Chamber Judge), when terms of Master Horton's Order of
12.6.90 slightly varied but otherwise appeal dismissed
with costs 28.6.90
Order of Mr Justice Byrne that the Order of Sir Master
Horton Q be varied (as per order) that otherwise the
appeal should be dismissed and that the Respondent
recover her costs of the appeal to be taxed from the
Appellant 28.6.90
*Conference with Mr D Boughen of Counsel regarding
further discovery 28.6.90
Telephone attendance on Defendant's Solicitors as to
which party should take out the Order made on appeal,
and advising her that original Order of Master Horton
had been taken out and we would arrange for it to be
served now 29.6.90
Drawing and engrossing draft Order of 28.6.90 Unknown
*Faxed letter to Mr D Boughen of Counsel forwarding
draft Order for settling and requesting advice as to
time limits to be imposed in view of no new dates being
set by Mr Justice Byrne 2.7.90
*Telephone attendance on Mr D Boughen of Counsel
regarding draft Order and also about time limits to be
imposed and discussing 3.7.90
*Letter to Town Agents enclosing copy Order of 28.6.90
for settling by Court and service
-- 22 of 47 --
23
3.7.90
*Telephone attendance on Town Agents when they advised
Registry require Order to be re-drafted 13.7.90
Redrawing and engrossing Order of 28.6.90 Unknown
*Letter to Town Agents enclosing redrawn Order for
settling and service 19.7.90
*Perusing letter from Town Agents enclosing sealed
copies of Orders made on 12.6.90 and 28.6.90 which had
been served on Defendant's Solicitors that day 27.7.90
*Telephone attendance on Town Agents confirming date of
service of both orders on the Defendant's Solicitors
1.8.90
Drawing and engrossing draft letter to Defendant's
Solicitors about non-compliance with the Order of Mr
Justice Byrne 2.8.90
*Faxed letter to Mr D Boughen of Counsel enclosing copy
Order of Mr Justice Byrne and draft letter to the
Defendant's Solicitors for settling 2.8.90
*Telephone attendance on Mr D Boughen of Counsel when
he suggested certain alterations to draft letter and
otherwise approved its contents, when he advised that
if, as a result of those answers it was proper for
paras. 4(c), (d) and (e) to be deleted then the whole
of para. 4 of their Defence and Counterclaim cannot
stand. Therefore we may need to Interrogate further,
subject to their reply, but otherwise the matter can be
set down for trial 2.8.90
Letter from Garrick & Co to Defendant's Solicitors (as
settled) advising that unless Defendant complies with
Order of Mr Justice Byrne by 9.8.90 then we intend to
seek further orders that para. 4 of the Defence and
Counterclaim be struck out with costs 2.8.90
Fax to Defendant's Solicitors with letter attached
2.8.90
Perusing faxed letter from Defendant's Solicitors
explaining delay caused in Wales but instructions now
received and conveyed to Counsel, but if we proceed
-- 23 of 47 --
24
with contemplated application then they intend to
cross-apply for an Order for extension of time to
comply with the Order of Mr Justice Byrne 8.8.90
Faxed letter from Garrick & Co to Defendant's
Solicitors acknowledging receipt of information in
their fax and advising that we consider a week adequate
for Counsel to settle and unless they file and serve
the Further and Better Particulars by the 15.8.90 then
we intend to proceed with application 8.8.90
Further and Better Particulars of the Defendant's
Counter-Claim - dated 16.8.90
*Perusing faxed letter from Town Agents enclosing copy
of Further and Better Particulars of Counter-claim
served on them that day 16.8.90
*Brief delivered to Mr D Boughen of Counsel to advise
on Defendant's further and better particulars of
counter-claim 29.8.90
*Telephone attendance on Mr D Boughen of Counsel of
Counsel discussing contents of his brief and advising
client's instructions in reply to allegations made
against her, also regarding the possibility of having
to discover all the deceased's bank statements, cheque
butts, records, etc. 13.9.90
*Telephone attendances on Counsel's Chambers and Mr D
Boughen of Counsel when he advised he had drafted a
letter for us to send to the Defendant's Solicitors
about the inadequacy of their particulars and would
forward to us by fax early next week 28.9.90
Letter from Garrick & Co to Defendant's Solicitors (as
settled by Counsel) advising that particulars supplied
do not respond to the request and they have not stated
any of the facts, matters or circumstances relied on
with regard to their allegations and requesting that
they supply further and better particulars of their
Particulars and the matters raised therein 1.10.90
Fax sent to Defendant's Solicitors attaching letter
2.10.90
Perusing faxed letter from the Defendant's Solicitors
in reply, advising that they are obtaining instructions
-- 24 of 47 --
25
regarding the possible deletion of certain paragraphs
of the Defendant's counterclaim, and enclosing copy of
the Further and Better Particulars served on our Town
Agents that day 15.10.90
(Further) Further and Better Particulars of the
Defendant's Counterclaim 15.10.90
*Perusing faxed letter from Town Agents attaching copy
of the Further and Better Particulars served on them on
the 15.10.90 16.10.90
*Faxed letter from Garrick & Co to Mr D Boughen of
Counsel enclosing copy of Defendant's Further and
Better Particulars and accompanying letter 16.10.90
*Telephone attendance on Mr D Boughen of Counsel when
he suggested content of letter in reply and advised
that we will need to look at what is left after they
confirm they intend to delete certain parts - may be
that we can apply to have other parts struck out
16.10.90
Drawing and engrossing draft letter to Defendant's
Solicitor for settling by Counsel 16.10.90
*Faxed letter from Garrick & Co to Mr D Boughen of
Counsel attaching draft letter for settling 16.10.90
*Letter to client enclosing copy of recent
correspondence for her information 16.10.90
*Telephone attendance on Mr D Boughen of Counsel
discussing amendments to draft letter 16.10.90
Amending draft letter from Garrick & Co to counsel
16.10.90
*Telephone attendance on Mr D Boughen of Counsel
checking amended draft and discussing, also discussing
regarding time when Defendant has to seek Court's
permission to amend 17.10.90
Letter from Garrick & Co to Defendant's Solicitors (as
finally settled) requesting their client's instructions
regarding deletion and whether client intends to amend
the Counterclaim and requiring a proper response to
-- 25 of 47 --
26
certain paragraphs of our earlier request for further
and better particulars of the Defendant's particulars
17.10.90
Fax to Defendant's solicitors attaching letter 17.10.90
Perusing faxed letter from Defendant's Solicitors in
reply requesting particulars of how we assert that the
Defendant has not properly given proper answers to our
request, etc. 19.10.90
*Faxed letter to Mr D Boughen of Counsel enclosing
copies of most recent correspondence for his
consideration 19.10.90
Perusing faxed letter from Defendant's Solicitors
advising that they now have instructions to delete
paragraphs 4(c) and (d) from the Counterclaim 1.11.90
*Faxed letter to Mr D Boughen of Counsel enclosing copy
of most recent correspondence with instructions to
draft a reply 2.11.90
*Telephone attendance on Mr D Boughen of Counsel
advising client is pressing for action, when he advised
major question is whether their plea is capable of
standing alone with those parts of their Defence struck
out and he intends to do research on the point, also he
queried whether they are being cagey about not knowing
what we want or not 8.11.90
*Perusing fax from Mr D Boughen of Counsel with settled
letter 15.11.90
Letter from Garrick & Co to Defendant's Solicitors (as
settled) setting out summary as a result of
correspondence and particulars etc. and requesting
those further particulars set out in our letter of
1.10.90 15.11.90
Fax to Defendant's Solicitors with letter 15.11.90
*Letter to client enclosing copy of recent
correspondence for her information 15.11.90
-- 26 of 47 --
27
*Telephone attendance on Mr D Boughen of Counsel
discussing summary of Defendant's position as he sees
it, when we advised that settled letter had been faxed
to Defendant's Solicitors that day 15.11.90
Perusing faxed letter from Defendant's Solicitors
advising that they had been instructed that the
Defendant no longer intends to defend our client's
action nor to prosecute further the counter-claim
26.11.90
*Faxed letter to Mr D Boughen of Counsel enclosing copy
faxed letter received from Defendant's Solicitors
26.11.90
*Telephone attendance on Mr D Boughen of Counsel when
he advised that we should now probably move for
Judgment and that our costs should be paid, when we
queried practical implications of obtaining probate of
the deceased's Will and whether this should be proof in
solemn form or common form, and discussing possibility
of recovering any costs order in the U.K. 26.11.90
*Further telephone attendance on Mr D Boughen of
Counsel when he advised procedure should be a motion
for judgment to be heard in Chambers, supported by
Affidavit material annexing Defendant's Solicitors'
recent correspondence, plus material to prove up the
Will, and discussing question of costs, when he
dictated text of letter to be sent 26.11.90
Letter from Garrick & Co to Defendant's Solicitors
advising we intend to move for an Application for
Judgment in the action and counter-claim with costs and
advising of our intention to proceed on this course
unless we heard from them to the contrary within 24
hours 26.11.90
Fax to Defendant's Solicitors with letter 26.11.90
*Perusing faxed letter from Mr D Boughen of Counsel
enclosing settled Notice of Motion and two affidavits
29.11.90
*Telephone attendance on Mr D Boughen of Counsel
regarding settled documents and discussing time frame
for lodgment of documents and possible return dates
29.11.90
Telephone attendance on Ann Sharp (nee Skewes) (other
attesting witness to Will) advising she required to
-- 27 of 47 --
28
swear joint Affidavit to obtain Probate and discussing
29.11.90
Engrossing Notice of Motion, Affidavit of D Garrick in
support of application for judgment and joint Affidavit
of D Garrick and A Sharp in support of application for
probate 29.11.90
Attending on swearing of Affidavit and Exhibits 30.11.90
Affidavit of D G Garrick (in support of application for
judgment) 30.11.90
Notice of Motion for judgment for the Plaintiff on the
claim and on the counterclaim and for orders that a
grant of probate of the Will of the deceased (dated
1.4.1984) be made to the Plaintiff and tha the
Defendant pay the Plaintiff's costs of the action and
counter-claim (returnable on 6.12.90) - dated 30.11.90
Attending at Brisbane to swear Affidavit jointly with
Ann Sharp, subsequent filing of all documents in
Supreme Court, attending serving Defendant's
Solicitors, and attending at Counsel's Chambers
delivering documents for Brief and conferring 30.11.90
*Telephone attendance on Mr D Boughen of Counsel
discussing possibility of Defendant's Solicitors
withdrawing and possibility of having to prepare an
Affidavit of Service unless we have an indication that
they intend to appear 3.12.90
Telephone attendance on Defendant's solicitors
esquiring whether they intend to appear, when they
advised they would be appearing but would not be
opposing our application with the exception of our
application for an order for costs, which they would be
opposing, and that she was preparing an Affidavit in
Reply and would fax through to our office that
afternoon 5.12.90
*Telephone attendance on Mr D Boughen of Counsel
advising of position when he requested that we let him
have a copy of their Affidavit as soon as received as
it ... probate (unopposed) and on application for costs
(opposed) when the Defendant's Counsel made an oral
application for payment of the Defendant's costs from
the estate, when Orders made in the Plaintiff's favour
10.12.90
-- 28 of 47 --
29
Order of Mr Justice de Jersey that Judgment be entered
for the Plaintiff on the claim and counterclaim, that a
grant of probate of the Will of ALBERT EDWARD SHEPPARD,
the deceased in the action, dated 1.3.84, be made to
the Plaintiff, and that the Defendant pay the
Plaintiff's costs of and incidental to the action and
counterclaim including any reserved costs after the
31.7.1989 on a Solicitor and (delete "own") client
basis to be taxed 10.12.90
Although there were times of little activity, eg.,
August, October and November 1989 and January, May and
September 1990, for the most part there was regular and
largely effective activity in this period directed to the
finalisation of the probate action. There is ample scope
for different views on what is substantially a matter of
impression, but I consider that, if the respondent had used
her "best endeavours", these steps would have taken less
than a year and probably closer to nine months. On
these estimates, which are necessarily broad and imprecise,
the respondent would have obtained probate by 1 June 1989
if she had used her "best endeavours" to do so. Some
general confirmation of this may perhaps be found in the
proposition that, had the probate action been prosecuted
diligently, it should have been completed within 18 months
from the point at which affidavits of documents had been
exchanged, which was prior to 26 November 1987 when 1 June
1989 was agreed as the operative date for the purposes of
clause 35 of the contract.
The crucial issue for decision is whether or not the
respondent could have obtained probate by 1 June 1989 if she
had used her best endeavours to do so. In my opinion, that
question should be answered in the affirmative. This is
contrary to the decision of the trial judge, whose view is
entitled to due weight. However, the conclusion depends on
drawing an inference from largely undisputed facts, and this
Court is in as good a position to do so as the trial judge.
Accordingly, the appeal should be allowed, with costs
to be taxed. The orders made below should be set aside and
-- 29 of 47 --
30
specific performance ordered. The parties can bring in
minutes of orders to deal with other matters.
-- 30 of 47 --
IN THE COURT OF APPEAL
SUPREME COURT OF QUEENSLAND Appeal No. 138 of 1993
Brisbane
[Egan v. Geraghty]
BETWEEN:
JILLIAN ADELAIDE EGAN
(Plaintiff) Respondent
- and -
CARMEL THERESA GERAGHTY
(Defendant) Appellant
The President
Mr Justice Pincus
Mr Justice Williams
Judgment delivered 16/02/94
Separate reasons for judgment by The President, Pincus JA.,
and Williams J. All concurring as to orders made.
APPEAL ALLOWED with costs to be taxed. Order made below
set aside and specific performance of the contract between
appellant and respondent dated 17 February 1986 ordered.
Parties to bring in minutes of orders to deal with other
matters.
CATCHWORDS: CONTRACT - SOLICITOR AND CLIENT - client's
responsibility for ensuring solicitor
proceeds diligently - sale of land - contact
subject to vendor obtaining title to land -
delay in prosecution of action for probate -
contract extended 3 years - probate obtained
18 months after contract date expired -
vendor terminated contract - whether client
responsible to other party for how diligently
solicitor prosecutes action.
CONTRACT - BREACH - default resulting in non-
fulfillment of condition - sale of land -
contract subject to vendor obtaining title to
land - delay in prosecution of action for
probate - contract extended 3 years - probate
obtained 18 months after contract date
expired - vendor terminated contract -
-- 31 of 47 --
32
whether conduct of respondent vendor must be
a dominant or merely contributing factor of
breach in order to prevent reliance on
condition allowing termination for non-
fulfillment.
Counsel: Mr. P. Lyons, with him Mr. B. O'Donnell for
the appellant
Mr. R. Myers, with him Mr.E. Howard for the
respondent
Solicitors: Mr. M. Stewart for the appellant
Michael Joseph Smith, Solicitors for the
respondent
Hearing Date: 25/11/93
-- 32 of 47 --
33
IN THE COURT OF APPEAL
SUPREME COURT OF QUEENSLAND
Appeal No. 138 of 1993.
Brisbane
[Egan v. Geraghty]
Before Fitzgerald P.
Pincus J.A.
Williams J.
BETWEEN:
JILLIAN ADELAIDE EGAN
(Plaintiff) Respondent
AND:
CARMEL THERESA GERAGHTY
(Defendant) Appellant
REASONS FOR JUDGMENT - PINCUS J.A.
Judgment delivered 16/02/94
The facts relating to this appeal are set out fully in
the reasons of the President.
An action for probate in solemn form is a type of
litigation of which many lawyers have little or no
experience. Unless the parties insist on promptness, cases
of that kind tend to suffer from lack of attention from busy
practitioners, who may tend to give priority to less
demanding work. The trial judge said that the action was...
"...of a kind seldom encountered by a solicitor,
particularly by a sole practitioner and it was
appropriate for [the plaintiff's solicitor] to
tread cautiously".
-- 33 of 47 --
34
In my opinion, there was no special need for caution,
as no particular danger was involved; there was merely the
fact that the lawyers had to study the characteristics,
procedural and otherwise, of a suit of this kind. The judge
said:
"The action commenced on 8 January 1987 and was
resolved by judgment on 10 December 1990. It is
regrettably correct to say that there was at that
time nothing unusual about such a timescale for
litigation in the Supreme Court".
At the end of this four year period interlocutory steps had
not been completed. For example, late in 1990 the form of
the defendant's pleading was still in question; the suit
was then well short of being ready for trial. Had it not
been for the defendant's abandonment of his resistance to a
grant of probate, it appears to me that the matter would
probably not have been disposed of for another year or two.
It may be that, to use the judge's language, there is
"nothing unusual" about an action for probate in solemn
form of no great complexity proceeding at that rate; but
that is not, in my opinion, to the point. The obligation of
the respondent (plaintiff in the probate action) under the
contract of sale, to use her best endeavours to become
registered as soon as reasonably practicable, was not
necessarily fulfilled if it was shown that the suit
progressed in a fashion which could be regarded as normal or
average.
As is pointed out in the reasons of the President,
-- 34 of 47 --
35
there was an agreement, entered into by way of variation of
the contract for sale, making 1 June 1989 the critical date.
The respondent's obligation to use best endeavours to
become registered as soon as reasonably practicable
continued after that variation. One way of testing the
respondent's fulfilment of that obligation is to examine the
formal steps which were taken on her behalf in the probate
suit, from the date of the variation, 26 November 1987, to
the new agreed date (1 June 1989) on or before which probate
had to be granted if there was not to be a right of
rescission. They may be shortly stated; February 1988
mutual inspection of discovered documents took place and in
March 1989 the respondent's solicitors served
interrogatories on the other side; no other formal
interlocutory steps were attempted.
It must have been evident that if matters were allowed
to go ahead at such a pace, there was no chance of resolving
a contested suit for probate in due time. The content of
the obligation to use best endeavours depends on the
contractual context; here, under the contract as varied,
there was a period of 18 months between the date of the
variation and the agreed date upon which the contract might
be rescinded if probate had not been granted. No doubt it
was possible to resolve the probate action within that time,
but only if the matter were given priority - by the lawyers,
as well as by the Court. When one sees that over a year
elapsed between inspection of documents and the taking of
-- 35 of 47 --
36
the next formal step by the respondent - delivery of
interrogatories - the objective conclusion must be that the
action was being pursued in a way which did not amount to
the use of best endeavours to obtain probate as soon as
reasonably practicable. That this was so must surely have
been evident to the respondent herself, and her practical
obligation was absolutely to insist on her solicitor
treating the case as urgent, or to obtain the services of a
solicitor willing to do so.
Authorities may be found, in the context of
applications to strike proceedings out, bearing on the
question whether the litigant should be held responsible for
his or her solicitor's dilatoriness. The question whether a
contractual obligation to act expeditiously is fulfilled if
the party in question engages a solicitor who acts in a
dilatory fashion is a different one, which it is not
strictly necessary to resolve in the present case. But I am
respectfully inclined to agree with the view expressed by
the President that the respondent was, under the contract,
responsible for the conduct of her lawyers: see Sargent v.
A.S.L. Developments Limited (1974) 131 C.L.R. 634 at 658-9
cited in C.S.S. Investments Pty Ltd v. Lopiron Pty Ltd
(1987) 16 F.C.R. 15 at 27. The respondent is said to have
expressed dissatisfaction with the delay in the action and
complained to the Law Society about it. But that had no
perceptible effect and it must have been clear that
continuing with the matter in the way in which it was
-- 36 of 47 --
37
handled, during the critical period, could not produce the
result the contract contemplated. As the primary judge
pointed out, the respondent's solicitor constantly consulted
counsel; nothing of any significance was done without his
advice. That slowed the matter up and in my view it was
plainly necessary, if the matter was to proceed
expeditiously, for the solicitor to take more responsibility
and exercise initiative. Further, as the judge also pointed
out, the solicitor had personal difficulties which tended to
excuse her lack of attention to the work; it seems clear
that that circumstance cannot afford any answer to the
appellant's claim.
The contract does not expressly say whether or not a
failure on the part of the respondent to use best endeavours
to obtain probate as soon as reasonably practicable affects
the respondent's right to rescind if probate is not obtained
by the agreed time. There is authority in the High Court
tending to support the view that the right to rescind of one
such as the respondent is lost if her default has
contributed to the non-fulfilment of the relevant condition:
Gange v. Sullivan (1966) 116 C.L.R. 418 at 441 referred to
in Perri v. Coolangatta Investments (1982) 149 C.L.R. 537 at
544-5 and at 566-7. I note also the reference to the party
relying on non-fulfilment of the condition having to act
"reasonably" in attempting to fulfil the condition, at p.
560 of the Perri case. On the other hand in Italo-
Australian Club v. National Australia Bank Ltd (1989) N.S.W.
-- 37 of 47 --
38
Conv.R. 55-461 pp. 58,342-3 referred to by the President, a
test more favourable to the respondent appears to have been
adopted. I refer also to the discussion in the C.S.S.
Investments case (above) at pp. 34, 35.
In the two High Court cases this question was not
examined in depth; the reference in Gange v. Sullivan to
conduct "contributing" to non-fulfilment of the relevant
condition should not be taken to be definitive. In my
opinion, at least in the present case, the proper
implication is that the party failing to use best endeavours
cannot rely on the failure of the condition contained in cl.
35 if the breach was a major cause of that failure. It does
not appear to me that the Court must be satisfied, if the
appellant is to succeed, that probate would have been
obtained in time if there had been no breach.
But in the present case the appellant passes both
tests. With the advantage of hindsight it may reasonably be
inferred that the abandonment, by the defendant in the suit,
of his defence of the probate action would have occurred
very much earlier had the case been pursued vigorously on
the respondent's side. When modest pressure was applied by
the respondent, the defendant's solicitors apparently
examined the strength of their case more closely and advised
their client not to resist the grant of probate further;
judgment for the respondent followed within a week.
-- 38 of 47 --
39
I agree with the orders proposed by the President.
-- 39 of 47 --
40
IN THE COURT OF APPEAL
SUPREME COURT OF QUEENSLAND
Appeal No. 138 of 1993
Before The President
Pincus JA
Williams J
BETWEEN:
JILLIAN ADELAIDE EGAN
(Plaintiff)
Respondent
and
CARMEL THERESA GERAGHTY
(Defendant) Appellant
JUDGMENT - G.N. WILLIAMS J.
Judgment delivered 16/02/1994
Most relevant facts are set out in the judgment of the
President which I have had the advantage of reading. I
would arrive at a similar conclusion, but in addition to the
matters referred to in those reasons there are other facts
which have affected my reasoning.
It will be recalled that on or about 26 November 1987
the parties agreed to an extension of the time on or before
which, pursuant to cl. 35, the respondent was to have
obtained a Grant of Probate; the new agreed date was 1 June
1989. Throughout 1989, Lyons, solicitors, were acting on
the appellant's behalf. On 13 March 1989 those solicitors
wrote to Messrs Garrick and Co., the then solicitors for the
respondent, as follows:
-- 40 of 47 --
41
"We refer to previous communications in relation
to the above. We note the time for satisfaction
of the condition contained in Clause 35 of the
Contract has been extended until the 1st June
1989. Our client has become extremely concerned
at the delays being experienced in the
satisfaction of that condition. The date for
satisfaction of the condition was originally the
1st June 1986. That date has been extended to the
1st June 1989. Our client considers that not all
best endeavours have been made to have that
condition fulfilled."
As no reply had been received thereto, a further letter
was written on 28 March 1989 requesting "a reply at your
earliest convenience". There was still no reply by 10 April
1989 when a further letter requesting "a reply at your
earliest convenience" was sent. That was still the position
on 19 April 1989 when Lyons wrote, so far as is relevant, as
follows:
"We refer to our letters of the 13th March 1989,
28th March 1989 and 10th April 1989 and note that
to date we have not received a reply. In
addition, we have telephoned your office on a
number of occasions and you have not been
available to take our call.
Unless we receive a response from you within seven
(7) days of the date of this letter, we will have
no alternative but to advise our client of the
alternatives and remedies available to her and
seek her instructions in relation to them."
Then came the letter of 21 April 1989, in which Lyons
reiterated much of what had been said in the earlier
correspondence; it noted that there had been no attempt to
return telephone calls made. Importantly that letter
contained the following paragraph:
"In our letter to you dated the 13th March, 1989,
we confirmed that the time for satisfaction of a
condition contained in Clause 35 of the Contract
-- 41 of 47 --
42
was extended until the 1st June 1989. Our client
has become extremely concerned at the delays being
experienced in the satisfaction of that condition,
and given the proper history of this matter, it
seems likely that your client may not obtain a
Grant of Probate within that time. It has now
been approximately three years since the date it
was anticipated that your client would be in a
position to fulfil Clause 35 of the Contract of
Sale. Our client considers that your client has
not used her best endeavours to fulfil that
condition, and we put you on notice that our
client considers that your client could not rely
on that provision to terminate the contract."
That did elicit a response from Messrs Garrick and Co.
on behalf of the respondent. The letter began by
apologising "for the delay in replying which has been caused
by the multiplicity of recent public holidays and pressure
at work". That is hardly an explanation for a total failure
to respond to the appellant's request from 13 March 1989.
The letter of 28 April 1989 advised the appellant of a
number of matters, asserted by the respondent's solicitors
to be relevant. In some ways the letter was misleading.
For example, it referred to the fact that on 6 March 1989 an
order granting Letters of Administration pendente lite had
been obtained; a perusal of all the material establishes
that such a grant was obtained for purposes not related to
the probate action relevant for the purposes of cl. 35. A
number of other paragraphs in that letter referred to steps
being taken in the action, but nothing was said as to the
date by which the respondent anticipated obtaining the
Grant. The letter concluded by stating:
"In the circumstances, our client considers she
has fulfilled the terms of the Contract insofar as
it is in her power to do so."
That brought a reply from Lyons dated 15 May 1989 in
-- 42 of 47 --
43
the following terms:
"It is evident that from the contents of your
letter that there is no prospect of the Grant of
Probate issuing by the 1st June 1989. We note
from your letter of the 6th May 1986 that your
client was then prepared to further extend the
period in which to satisfy Clause 35 of the
Contract if this should be necessary.
We believe a further extension will be necessary,
and given that the action is not yet been entered
for trial, it is unlikely that trial dates will be
obtained within the next two years. We therefore
propose a further extension for satisfaction of
the condition contained in Clause 35 until the 1st
June 1992.
A form of agreement to extend time is enclosed for
execution by your client."
As no reply had been received by 26 May 1989 a further
letter was written which is of some significance:
"Our client has expressed concern as to the course
of action which your client recently indicated she
intends to follow in terminating the existing
contract and making a fresh offer to sell the
property to our client.
We have advised that our client that if Mrs Egan
terminates the contract she exposes herself
personally to an action for damages. We consider
the measure of damage to be the difference between
the current value of the property and the Contract
price, which on our instructions is in the order
of $100,000.
Please give us a clear indication of your client's
intention with respect to the contract within
seven (7) days. If we have not heard from you by
that time, we shall have no alternative but to
proceed on the basis that your client intends to
terminate on the 1st June, and to prepare
accordingly."
The next response from Garrick and Co. was the letter
of 18 October 1989, well after the due date.
The letter of 6 May 1986 to which Lyons referred in
their letter of 15 May 1989 was from McGregor Garrick and
-- 43 of 47 --
44
Co., the then solicitors for the respondent, to Lyons.
Relevantly it said:
"Our client has instructed us to agree to an
extension of the time for us to satisfy the
provisions of the Clause 35 of the Contract for a
period of 12 months from 1st June, 1986, namely to
the 1st June, 1987, with time to remain of the
essence of the contract. Our client has indicated
that she is also prepared to further extend the
period in which to satisfy Clause 35 if this
should be necessary. She will give us formal
instructions regarding a further extension in
1987."
What, in my view, is of significance is that there was
no response from either the respondent or her solicitors, to
the assertion that there had at an early stage been an
indication of preparedness to extend time under the subject
clause if necessary. Further, and perhaps more importantly,
there was no response to the assertion that the respondent
had, prior to 26 May 1989, indicated an intention of
terminating the existing contract and making a fresh offer
to sell to the appellant.
That latter matter was put to the respondent during
cross-examination. The context makes it clear that the
questions related to the period May 1989 during which there
was a telephone conversation between Mr Geraghty, the
appellant's husband, and the respondent; the following
questions and answers are relevant:
"Q. And then you said that Denise Garrick had
said that no consent for an extension was to be
signed at this stage and that property values had
increased over the time and that you had lost
interest over the four years which may have to be
charged and that we could come to some compromise
as to what would be fair to both parties? -
A. Yes.
-- 44 of 47 --
45
Q. You agree with that? -
A. Well, I can recall the contract prior to being
$80,000 and I really felt I couldn't afford to
dispose of the property because - without - I
couldn't afford, really, to sell the property, in
short, to Mrs Geraghty for $80,000 when it was
worth a lot more.
Q. At the time the contract was signed you were
happy to sell it for $80,000? -
A. Yes.
Q. By the middle of 1989 you thought the property
was worth much more than $80,000? -
A. Well, I had asked the real estate agent and
had been told the value of the property, yes, and
it was worth a lot more.
Q. And for that reason you wanted to keep it for
yourself? -
A. Well, I didn't want to sell it for $80,000.
. . .
Q. You sought to get out of the contract with
Mrs Geraghty? -
A. Yes."
The only rational conclusion one can draw from that is
that the conversation referred to, took place before the
letter of 26 May 1989 was written.
M.J. Geraghty, the appellant's husband, gave evidence
at the trial about that telephone conversation. He swore it
occurred on 3 May 1989. He reiterated in his evidence that
the respondent said that she had "lost interest" over the
last four years and that they may have to come to some
compromise as to what would be fair to both parties.
Against that background it is instructive to look at
what occurred between March and June 1989 by reference to
the chronology incorporated into the reasons for judgment of
-- 45 of 47 --
46
the President. Nothing of substance occurred,
notwithstanding the contention by and on behalf of the
appellant that the respondent was not using "best
endeavours" to conclude the probate litigation.
What is also interesting is that in that chronology
against the date 2 May 1989 there is the statement that the
respondent informed her solicitor that "she had received a
letter and consent from Geraghty". That confirms some
personal communication whereby the respondent received a
further consent form directly from the appellant for an
extension of time. The oral evidence also establishes that
there were several telephone discussions directly between
the parties, particularly in the first half of 1989.
The conversation on or about 3 May 1989 does not of
itself establish that the respondent intended not to be
bound by the contract but it is nevertheless evidence that
confirms that she was not using her "best endeavours" to
meet the condition. If her conduct established an intention
not to be bound by the contract then she would not have been
in a position to rely on the condition at a later point of
time (cf. Carpentaria Investments Pty. Ltd. v. Airs and
Arnold (1972) Qd.R. 436 at 461).
In my view all of the matters to which I have referred
reinforce the conclusion that the respondent was not using
"best endeavours" to satisfy the condition prior to 1 June
1989, and therefore she was not in a position to bring the
contract to an end on account of the non-fulfilment of the
condition in cl. 35.
-- 46 of 47 --
47
I agree with the orders proposed by the President.
-- 47 of 47 --
Official source: https://www.sclqld.org.au/caselaw/QCA/1994/008