ARTICLE · 05 SEPTEMBER 2010

Selling Contaminated Land: Does Silence Constitute Misleading Or Deceptive Conduct?

DLA Piper Australia

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vendor's silence in relation to contamination may not always constitute misleading or deceptive conduct. The recent NSW Supreme Court decision in Vitek v Estate Homes Pty Ltd [2010] NSWSC 237 (Vitek) confirms that silence will be misleading or deceptive only if what was said and the context in which it occurred gives rise to a reasonable expectation of disclosure.

AustraliaEmployment and HR

Charmian Barton

A vendor's silence in relation to contamination may not always constitute misleading or deceptive conduct. The recent NSW Supreme Court decision in Vitek v Estate Homes Pty Ltd [2010] NSWSC 237 (Vitek) confirms that silence will be misleading or deceptive only if what was said and the context in which it occurred gives rise to a reasonable expectation of disclosure.

The facts

Mr and Mrs Vitek as vendors and Estate Homes Pty Ltd as purchaser entered into a contract for the sale of a commercial property at Redfern, NSW. The contract provided for an extended settlement with a view to Estate Homes obtaining development consent for the carrying out of certain works on the property for residential purposes.

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