Legal Case Study

CASE STUDY QUESTION – MKGT 350

2015

Mr and Mrs Trump purchased a block of land located in an exclusive suburb on Queensland Sunshine Coast. It had been their long-term dream to design and build a unique, luxury home and retire to a life of tropical paradise in their new home. They employed an architect (‘Bob Smith Architects’) to help design and create the overall plans for the new house. The Trump’s contribution to the final plan consisted of numerous sketches and verbal communication between the parties (‘Bob Smith’ and the Trumps) about what the house would ultimately look like and how big the house would be. Bob Smith, with input from the Trumps, spent over 150 hours working on the design, which could be described as Moroccan-Mexico influence. When the design was completed the house was built and the Trumps moved in. Compared with other houses in the area the Trumps house (the ‘Smith-Trump House’) was distinguishable and unique in style. Strangers would often stop in front of the house to admire it.

However, due to unforeseen circumstances the Trumps where forced to sell the house at Auction six months later. Two parties were extremely interested in the ‘Smith-Trump house’ and it was sold at a reasonable price ($1,500,000) to Mr Vic Lim and his family. About twelve months later, Fred and Mabel Wolf, disappointed prospective purchasers of the ‘Smith-Trump house’, liked the house so much they decided to pay $1,000,000 to Sunshine Coast Builders (‘SCB’) to build a house for them. They used plans drafted by building architect Bob Smith (‘Smith-Trump House’ plans). Mr Vic Lim became aware that in the adjoining suburb the unsuccessful auction bidder for his house had purchased a block of land and engaged builders (Sunshine Coast Builders (‘SCB’)) to build a house for them using the ‘Smith-Trump house’ plans. Mr Vic Lim put ‘SCB’ on notice of the fact that he held copyright of the ‘Smith-Trump house’ plans and he objected to the construction of a house...