(07) 3186 6666

Lease Dispute – Tenant’s Supreme Court Success

Jan 12, 2022 | Article

Lease Dispute – Tenant’s Supreme Court Success

Shopping centers are expensive to maintain and anchor tenants in particular pay considerable amounts for outgoings – things such as cleaning, security, and general maintenance.
We act of the owner of a well-known grocery store Chain, in complicated proceedings relating to several years of overcharged outgoings. On our advice, proceedings were commenced in the District Court, in which our client was awarded several hundred thousand dollars, with costs.
The Landlord then challenged this outcome in the Supreme Court, contesting the validity of the expert determination and the extent of the overcharge.
Several arguments and thousands of supporting invoices and material going back 8 years had to be carefully considered and responded to. We are very pleased with the outcome of the proceedings because:

1. It was held in the Supreme Court that subject to minor GST corrections, the determination is binding.

2. The landlord was ordered to pay 80% of our client’s legal costs in the Supreme Court.

This is a tremendous outcome for our client, and the result of painstaking and diligent work on our part to get all the relevant evidence, and expert material before the Courts.
This was also an important reminder to carefully check leases; even old ones, from time to time – specifically clauses dealing with outgoings, rent, and rent reviews.

Contact us if you need assistance with any commercial lease disputes. Peter Lee is an Accredited Specialist in Property Law and acts for many Lessee clients reviewing and amending proposed leases, and for Lessor clients of existing commercial premises, and in Shopping Centre Development, with preleasing activities.