TPB505TA: Property Law Contract Dispute Analysis - First Fleet

This report provides legal advice to First Fleet Pty Ltd. regarding potential liabilities related to a property development. The report identifies issues arising from the directors' failure to disclose soil toxicity levels to buyers and their knowledge of structural risks. It analyzes these issues under relevant statutes like the Environment Planning and Assessment Regulation 2000, the Contaminated Land Management Act 1997, the Consumer and Competition Act, and the Civil Liability Act 2002. The analysis concludes that First Fleet Pty Ltd. may be liable for misrepresentation and negligence, requiring them to compensate buyers for damages, including emotional distress and property damage. The report emphasizes the importance of disclosing all relevant factors about the project to buyers and adhering to planning regulations.

Property Law Contract
Dispute

MAIN BODY
Issue
1. The directors were aware of facts about toxicity levels in the soil of development area, but
they did not disclose this fact to the buyers of the property and they are in hurry to sell the
houses quickly. So, they can earn profit by misrepresentation of fact.
2. They know that under any circumstance a building can not survive more than few years, but
they did this act negligently and have in knowledge about the consequences that it can also
degrade concrete and steel structures.
Rule
Schedule 4 Rule 7 under Environment Planning and Assessment Regulation 2000, talks about the
restriction of development of the land because of the likelihood of land slip, bushfire, flooding, tidal
inundation, subsidence, acid sulphate soils or any other risks.
Section 10.7 provides planning certificate information about how the land may be used. It also
provides information about the restrictions of development applying to the land.
Section 13 and 16 under Contaminated Land Management Act 1997, talks about choice of
appropriate person to be made subject to management order and the action that may be required by
management order.
Section 18 of consumer and competition act talks about Misleading or deceptive conduct, a person
must not, in trade or commerce, engage in conduct that mislead or deceive.
Rule 5A of Part 1A Negligence of Civil Liability Act 2002 talks about Application of Part, this
applies to claim for damages for harm resulting from negligence, this part do not apply to any civil
liability that is excluded from the operation of this part by section 3B.
Compensation for actual Damage, section 12.17 the compensation for actual damage to the
plaintiff is to be awarded, and damage consists of physical and mental injury, property damage or

any other economical damage is caused by tort and it will fell within the principles of remoteness of
damage.
Analysis
First Fleet Village Pty. Ltd. Reclaimed area of swampland and disused industrial land. So ,
they can develop that land and built prestigious waterfront houses. The directors were well known
about the fact that there is toxics in soil of development land, they dump metre of soil everywhere
in the land and grew some plants in that area. All homes were sold within 2 weeks on no negotiation
basis. The director have mislead the fact about toxic soil in land, they have to disclose this
information to the customer and it is reasonable to expect that there is no such activity is to be done.
They have falsely sell all house to each and every customer by misleading of fact. This all depends
on the relevant circumstances taken into consideration, such as statement made by a sales
representative. It is illegal for someone to engage in an act that misleads or deceives or is likely to
mislead or deceive consumer.
This is an negligent act done by First Fleet Village Pty. Ltd. One person have duty of care
for another person to avoid causing foreseeable harm to that party. However this duty is not owned
by every person to another person. The duty of care makes a person responsible to take reasonable
steps to avoid causing harm to anyone. Standard are higher in cases of professional negligence,
these type of cases involves relationships where one party owes duty to other in professional
qualification and expertise. First Fleet Pty. Ltd. Must have taken in care to avoid acts or omissions
which are likely to cause injury to anyone.
The First Fleet Pty. Ltd. Have to give compensation to all the customers who buy there
houses in this development project. They have to give compensation over damages for emotional or
mental distress as Dave and Angie were horrified from the conduct of the company and all the
parents are afraid to let there children go outside and play. There is actual damage in there property
and actual damage consists of physical and psychiatric injury, property damage or other economical
loss. It affect there business also, the people living in fear can't go to do there jobs because of cracks
appearing on wall and the atmosphere is not safe for anyone to live there because of toxic soil.
A planning certificate is provided on how the land may be used and also provides
information about development restriction on the land. Planning certificate contains correct
information on the day of issue and planning to control are subject to change. The planning
certificate includes property zoning, any road widening proposals, permitted and prohibited uses,
state planning policies that affect the land, flood related development controls, whether or not land
is bush fire prone, with the development control plans that apply to the land. There are three type of

planning certificate. The company and board of directors have to disclose all the related factors
about project to the people who were buying houses by trusting them.
Conclusion
From the following scenario it can be summarised that the board of directors and First Fleet
Village Pty. Ltd. Have to give compensation to all the people who buy there house and living there.
All the people were in fear of cracks and they can't even grow plant in there premises, everyone of
them have given price without negotiation. The company started construction within 6 month after
dumping soil, it normally takes 5 year before the land can be built. One of the board of director was
themselves a scientist, they have to be in knowledge about all the consequence which will arise
after they will sell the property. By natural occurrences soil they dump drained, excavated or
exposed to air, the sulphates were coming into contact with oxygen and reacting to form sulphuric
acid. This is releasing heavy metals like arsenic, it is killing vegetation and this leads to degraded
quality of concrete and steel structure.