Question
Question Matthew, a well-known solicitor in Darwin, has a longstanding client named Richard, a 75-year-old retired academic but somewhat naive man. Richard purchased a 0.5ha
Question
Matthew, a well-known solicitor in Darwin, has a longstanding client named Richard, a 75-year-old retired academic but somewhat naive man. Richard purchased a 0.5ha parcel of land in Cullen Bay and built a modest family home in 1978. He is content with his simple lifestyle but faces issues with an overgrown garden on his property, leading to complaints from neighbours and the Darwin City Council. In an effort to address these concerns, Richard consults Matthew for legal advice, saying, "I've reached an age where dealing with these sorts of complaints is challenging. Could you assist me in sorting this out, please?"
Recognising the development potential of Richard's land, Matthew quickly seizes the opportunity. He collaborates with his sister Alice, a real estate agent, and a builder named James to devise a plan to construct 12 luxury cottages on the site, each with a pool and garden. Half of the properties will feature water frontage, offering commanding views from the deck area overlooking the sea and Darwin's renowned sunsets. Alice is thrilled with the proposal and says, "This is a great opportunity! In fact, I've spoken to Richard several times. There were many interested potential buyers who made good offers for his land, but he turned them down. It's good that his solicitor suggested this you know, solicitors know better. This is a win-win for me."
In a swift turn of events, Matthew proposes a deal to Richard, wherein Richard transfers the land to a new company set up by Alice. This company then enters a joint venture agreement with James. In exchange, Richard gains the option to choose a cottage for himself, a free stay at a hotel owned by Alice until the new cottage is ready, and Matthew receives a complimentary cottage for his legal services. Alice and James share the development profits.
Richard is happy with the deal, realising he can remain in Cullen Bay, enjoy an even more spectacular view, reside in a luxurious cottage, and avoid any further issues with the council and neighbours. Given Richard's implicit trust in Matthew, he consults with Matthew to confirm the deal's suitability. After receiving assurance from Matthew that "yes, this is a good deal," Richard promptly signs up for the deal.
The plan unfolds successfully over the next 12 months, resulting in substantial profits to Alice and James and luxurious cottages for Richard and Matthew.
However, a year later, when Richard's son Des visits, he discovers the transformation of the family home and garden into cottages, and he is shocked and dismayed. Des is concerned as he believes this agreement is not favourable for his father, and Richard wonders whether Matthew has breached the duties as his solicitor.
Now seeking advice on potential equitable redress, Richard turns to you, Darwin's leading expert on Equity.
i. Given the current situation, advise Richard on any potential equitable action/s he may pursue against Matthew, Alice and James and assess the prospects of success.
ii. Briefly explain what equitable remedies that Richard is entitled to.
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