Supreme Court Win in Premium Real Estate case

Supreme Court Win for Simpson Grierson in Long-running Premium Real Estate Case.

6 March 2009: The Supreme Court in Wellington today upheld the High Court decision that Auckland real estate company Premium Real Estate breached its obligations to an Auckland couple over the sale of their multi-million dollar home.

Simpson Grierson litigation partner Willy Akel and senior associate Natasha Alley have represented the couple since the case began and are delighted with the Supreme Court judgment, which held that Premium had breached its fiduciary duties and as a result, is required to pay the couple approximately $1million (including interest and costs).

"This judgment is an important one. Real estate agents must act in the best interests of the people they are selling homes on behalf of," said Willy Akel. "They must make full disclosure of any conflict of interest, otherwise they will have to pay a very high price."

The case began in April 2004 when the couple sold their Milford home through Premium for $2.575 million. Approximately six months later it was on-sold for $3.555 million. The couple then sued Premium, believing their property had been undersold and raised concerns about the agent's relationship with the buyer. The buyer was a property developer for whom Premium was already acting on other property transactions.

In December 2006, the High Court in Auckland found that the property was sold below its market value and that Premium's failure to disclose the agent's relationship to the buyer was misleading and deceptive conduct, and a breach of the company's fiduciary duty to them. Following the judgment, Premium was required to pay the couple $742,050 plus costs and interest, which brought the total award to almost $1million. Premium appealed the judgment and the couple cross-appealed the sum awarded.

In April 2008 the Court of Appeal upheld the High Court ruling that Premium's actions had breached its legal obligations to the couple, but cut the damages award against Premium to $225,000.

Today the Supreme Court upheld the High Court and Court of Appeal judgments that Premium had breached its obligations and increased the sum awarded by the Court of Appeal to $726,863, entitling the couple to approximately $1million (including costs and interest).

ENDS

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