Recently sold $7.5m Yowie Bay house provides a lesson in slander of title

One of the largest waterfront estates in the Sutherland Shire that was at the centre of a recent landmark court case has been sold for $7.5 million, smashing the suburb house price record in the process.

The Supreme Court matter known as Blythe v Willis relates to a case of trespass and slander of title after a neighbour of the Yowie Bay property falsely claimed right of carriageway over it, prompting a $7.15 million buyer to pull out of the purchase.

Two years after that failed sale, records show the waterfront property has sold again, this time for $7.5 million to a company solely owned and directed by John Hills, a major sponsor of the Sutherland Sharks through his PVC pipe manufacturing business Pipe King.

At the centre of the dispute is the vast 7100-square-metre estate owned by Jill Blythe and an adjoining waterfront block bought from the Blythe family in 1980 for $46,950 by Constance Willis.

In 1990 Ms Willis’ late daughter, Geraldine, and her husband Stan Muzica moved into a boatshed on the family property, and for about the next 25 years were granted informal permission to access it via a waterfront track that crosses onto Blythe land.

But when Mrs Blythe listed her home two years ago, Mr Muzica said he would “go legal” over his claim for a right of carriageway, despite there being no such registered right.

The day after Mrs Blythe exchanged to sell her home for $7.15 million, lawyers for Mr Muzica warned her: “You will now need to disclose this dispute to any purchaser of your property.”

It was a telling statement, according to Justice Arthur Emmett’s judgment. “Stan Muzica intended to interfere with the proposed sale of the Blythe land … He succeeded in that object.”

Six months after exchange the buyer rescinded on the deal, and a court ordered that $250,000 of the $715,000 deposit be returned to the buyer and the $465,000 balance to Mrs Blythe.

A week later, in September 2016, Mrs Blythe withdrew her consent for the Muzica family to use her waterfront track.

But the Muzica family continued to to use the track after a gate and concrete blocks were installed, and a chain locking the gate was also forcibly broken by a member of the Muzica family.

It was enough to warrant both a claim of trespass and an action over the lesser-known common law of slander of title in which a false claim disparages a property causing financial loss.

Justice Emmett found in February the neighbours had no genuine basis for their claim over Mrs Blythe’s land. As such, he awarded her legal costs, $7391 damages for trespass, and dismissed a claim by Mr Muzica for a court-imposed easement.

Despite the dispute the value of Mrs Blythe’s land scored a fillip early last year when council approved its subdivision into six lots, including one with the family’s eight-bedroom residence and three on the waterfront.

The previous sales campaign was recommenced this year by Greg Gilbert Real Estate and records show it sold a few months later for $7.5 million.

The sale price smashes the previous suburb high by 37 per cent, set early last year at $5.45 million for a  contemporary waterfront house on nearby Attunga Road.