Laundy Group wins court case over sale of Quarryman’s Hotel in Pyrmont

When two pub barons went to war over Pyrmont’s Quarryman’s Hotel, one of them came out of the court battle with a very expensive tab to pay.

The collapse of an $11 million sale of one of Sydney’s most historic hotels has seen two rich pub-owning families go to war in court — and cost one of them $2 million.

When the Laundy family agreed to sell the Quarryman’s Hotel in Pyrmont to mother and son Daphne and Colin Parras, it was touted as the move that would return that family to the industry.

But the sale fell through and the Parras family has been ordered by the NSW Supreme Court to pick up the tab for what could be Sydney’s most expensive shout.

Justice Rowan Darke this week ordered the Parras family to forfeit the $562,500 deposit they put down on the pub.

They were also ordered to pay the Laundys $900,000 in damages, and pick up the tab for their own high-priced legal team and the Laundys’ too, which came in at an estimated $200,000.

The final bill was about $2 million.

Stu Laundy in Bells Hotel in Woolloomooloo. Picture: Sam Ruttyn

And the Laundy family hotel empire gets to keep the pub.

Contacted this week about the court battle, Stu Laundy said it was unfortunate but business was business.

“It’s a great little pub,” Laundy said. “So I feel for the bloke (and his mother) to be honest. I really feel sorry for him. I think it would have been a good move for him.”

According to documents filed in the NSW Supreme Court, the Parras family agreed to purchase the pub, which is known for its range of boutique beers, for $11.25 million in a contract dated January 31, 2020.

As part of the deal, the Parras family put down a 5 per cent deposit on the sale.
But then COVID-19 hit.

Colin Parras. The Parras family was ordered to forfeit their $562,500 deposit they put down on the pub

With the restrictions placed on pub trading, the Parras family argued the contract had been “frustrated” and that the pub was worth $1 million less than what they originally agreed to pay.

So they took legal action to get their deposit back.

The Laundys held firm and argued that, despite the public health orders, which were eventually lifted, “the hotel business continued to trade … albeit that it was restricted to providing food and beverages to customers to consume off the premises.”

Stu Laundy (left) and brother Craig Laundy (right) with patriarch Arthur Laundy at his recent birthday celebrations. Picture: Richard Dobson

The Laundys argued that the Parras family “wrongfully refused to perform or otherwise repudiated the contract, and failed to complete the contract as required” after being given notice that they were in breach on April 28, 2020.

Justice Darke agreed and ruled the Laundys were entitled to terminate the sale contract and keep the deposit and the pub.

“Whilst one may sympathise with the predicament that faced the (Parras family) from about 21 March 2020, and one can readily understand their reluctance to proceed to completion in the uncertain circumstances that prevailed … in my opinion, the contract was not frustrated,” Justice Darke told the court. “The parties remained bound by the contract.”

Justice Darke ordered the Parras family pay the Laundys $900,000 damages because the pub was valued at about $1 million more than the agreed sale price.

Mr Laundy said it was a shame the deal fell through, but the hotel had recovered to be very profitable after the COVID-19 shutdowns.

Quarryman’s Hotel in Pyrmont.

“He essentially agreed to buy the Quarryman’s from us and, to be honest, I thought it was a pub that he was perfectly suited to,” Mr Laundy said.

“It is one of our smaller pubs and we were keen to sell at the time.”

“Colin … wanted his deposit back (after COVID hit), which by that stage was too late as we had exchanged contracts. But we continued to get all these legal letters about abandoning the sale and Colin wanting his deposit returned,” he said.

“It was a shame, really, because as we now know pubs have recovered incredibly well and the Quarryman’s is going great guns for us now. It’s full steam ahead.”

The Parras family was contacted for comment.