Charlie Bridge Street Pty Ltd v Petrazzuolo; Petrazzuolo v Charlie Bridge Street Pty Ltd [2019] NSWCATCD 1

Charlie Bridge Street Pty Ltd v Petrazzuolo; Petrazzuolo v Charlie Bridge Street Pty Ltd [2019] NSWCATCD 1

Clause 12.2.4 of the Law Society Commercial Lease is void to the extent it requires notice before forfeiture for non-payment of rent, as this is contrary to s129(10) of the Conveyancing Act 1919; thus, the landlords lawfully re-entered and terminated the Lease without giving further notice, and the tenant’s claim for wrongful termination fails. The landlords are entitled to damages for unpaid rent and reasonable re-letting costs, less the bank guarantee credited, and to their costs as the amount in dispute exceeded $30,000.

Parties
Applicant/respondent: Charlie Bridge Street Pty Ltd; Applicant/respondent: Rafaelle Petrazzuolo; Applicant/respondent: Laura Mary Petrazzuolo
Jurisdiction
Australia
Judgment Date
01 February 2019
Procedural Posture
Retail Lease Dispute / Final Decision After Hearing
Outcome
Claim by tenant dismissed; damages and costs awarded to landlords.
Legal Topics
Lease Termination, Forfeiture, Damages, Relief Against Forfeiture, Contract Interpretation
Property Law Commercial Tenancy Lease Termination Forfeiture Damages Relief Against Forfeiture Contract Interpretation

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Parties

Charlie Bridge Street Pty Ltd

Applicant/respondent

Rafaelle Petrazzuolo

Applicant/respondent

Laura Mary Petrazzuolo

Applicant/respondent

Procedural Posture

Retail Lease Dispute / Final Decision After Hearing

Legal Issues

  1. 1 Whether clause 12.2.4 of the Law Society Commercial Lease requiring notice is contrary to s129(10) of the Conveyancing Act 1919
  2. 2 Whether the landlord could re-enter and forfeit the lease without giving additional notice for non-payment of rent
  3. 3 Damages owed to the landlord for breach of lease by the tenant

Ratio Decidendi

Clause 12.2.4 of the Law Society Commercial Lease is void to the extent it requires notice before forfeiture for non-payment of rent, as this is contrary to s129(10) of the Conveyancing Act 1919; thus, the landlords lawfully re-entered and terminated the Lease without giving further notice, and the tenant’s claim for wrongful termination fails. The landlords are entitled to damages for unpaid rent and reasonable re-letting costs, less the bank guarantee credited, and to their costs as the amount in dispute exceeded $30,000.

Court Disposition

Claim by tenant dismissed; damages and costs awarded to landlords.

Orders

  • Clause 12.2.4 of the Law Society Commercial Lease is contrary to s129(10) of the Conveyancing Act 1919 and unenforceable.
  • The applicant's Retail Lease claim (Com 17/52559) is dismissed.