JHC Sydney Pty Ltd v Everson & Fauchon; Everson v JHC Sydney Pty Ltd [2003] NSWADT 100

JHC Sydney Pty Ltd v Everson & Fauchon; Everson v JHC Sydney Pty Ltd [2003] NSWADT 100

The lease limited the Eversons' liability to one half, and the landlord's recoverable loss was reduced because it failed to mitigate after the lockout by rejecting Mr Zhang's $24,000 per annum offer without properly involving the defaulting tenants. The recoverable rent and damages totalled $18,068.97, divided equally between the Eversons and the Fauchons, producing orders that each couple pay $9,034.49. The goods and fittings claim did not reduce liability because the Zhang offer assumed the premises remained fully fitted out. No interest or costs were awarded, and matter 025107 was dismissed.

Jurisdiction
Australia
Judgment Date
13 May 2003
Procedural Posture
Claim for Payment of Money; Application for Declarations / Principal Matter
Outcome
JHC's claim in matter 025046 allowed in part; matter 025107 dismissed; no order for costs.
Legal Topics
['arrears of Rent' 'damages for Rent Lost After Lockout' 'duty to Mitigate Loss' 'tenant Liability Under Lease' "tenants' Goods and Fittings" 'no Order for Costs']
['retail Leases' 'contract' 'property'] ['arrears of Rent' 'damages for Rent Lost After Lockout' 'duty to Mitigate Loss' 'tenant Liability Under Lease' "tenants' Goods and Fittings" 'no Order for Costs']

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Procedural Posture

Claim for Payment of Money; Application for Declarations / Principal Matter

Legal Issues

  1. 1 ['Whether Neil and Michelle Everson were liable for the whole rent claim or only one half under the lease.' 'Whether the landlord was entitled to recover arrears of rent and damages for rent lost after the lockout.' "Whether the landlord failed to mitigate its loss by rejecting Mr Zhang's offer to lease the premises." "Whether the value of tenants' goods and fittings retained by JHC should be credited against liability." 'Whether interest or costs should be awarded.']

Ratio Decidendi

The lease limited the Eversons' liability to one half, and the landlord's recoverable loss was reduced because it failed to mitigate after the lockout by rejecting Mr Zhang's $24,000 per annum offer without properly involving the defaulting tenants. The recoverable rent and damages totalled $18,068.97, divided equally between the Eversons and the Fauchons, producing orders that each couple pay $9,034.49. The goods and fittings claim did not reduce liability because the Zhang offer assumed the premises remained fully fitted out. No interest or costs were awarded, and matter 025107 was dismissed.

Court Disposition

JHC's claim in matter 025046 allowed in part; matter 025107 dismissed; no order for costs.

Orders

  • ['In matter 025046: Pursuant to Section 72(1) Karen and Mark Fauchon are to pay, at the expiration of 28 days from the date hereof, the sum of $9,034.49 to JHC Pty Limited.' 'In matter 025046: Pursuant to Section 72(1) Neil and Michelle Everson are to pay, at the expiration of 28 days from the date hereof, the sum...