Coolabah Tree Aust-Wide Pty Ltd v Dib Group Pty Limited [2010] FCA 805

Coolabah Tree Aust-Wide Pty Ltd v Dib Group Pty Limited [2010] FCA 805

Coolabah and Mr Grant failed to prove that Dib Group made misleading representations as alleged, or that they relied upon any statements or representations in entering the sublease, fuel agreement, or guarantee. Dib Group validly exercised the option to renew the sublease; Coolabah abandoned the premises and thereby repudiated the sublease. Dib Group was entitled to damages for lost rent and loss of bargain from Coolabah; cross-claim against Mr Grant failed, as he was not a guarantor under the sublease. Dib Group also repudiated the head lease, entitling Kevmark to damages for repair, lost rent, and loss of bargain. Claims for unpaid outgoings, supply of LPG AutoGas tank, and substantial...

Parties
Applicant / First Cross Respondent: Coolabah Tree Aust-Wide Pty Ltd (ACN 115 559 101); Applicant / Second Cross Respondent: Andrew Donald Grant; Respondent / Cross Claimant: Dib Group Pty Limited (ACN 002 889 474); Cross Respondent / Cross Claimant: Kevmark Industries Pty Limited (ACN 097 354 679)
Jurisdiction
Australia
Judgment Date
30 July 2010
Procedural Posture
Civil / Judgment
Outcome
Application by Coolabah and Mr Grant dismissed; cross-claims: Dib Group succeeds against Coolabah, fails against Mr Grant and Kevmark; Kevmark succeeds against Dib Group.
Legal Topics
Misleading and Deceptive Conduct, Repudiation of Lease and Sublease, Damages Assessment, Obligation to Repair and Reinstate Premises
Trade Practices Landlord and Tenant Misleading and Deceptive Conduct Repudiation of Lease and Sublease Damages Assessment Obligation to Repair and Reinstate Premises

Case Brief

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Parties

Coolabah Tree Aust-Wide Pty Ltd (ACN 115 559 101)

Applicant / First Cross Respondent

Andrew Donald Grant

Applicant / Second Cross Respondent

Dib Group Pty Limited (ACN 002 889 474)

Respondent / Cross Claimant

Kevmark Industries Pty Limited (ACN 097 354 679)

Cross Respondent / Cross Claimant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether Dib Group made misleading or deceptive representations to Coolabah and Mr Grant as to future revenues at the site
  2. 2 Whether Coolabah and Mr Grant relied on representations in entering the sublease, fuel reselling agreement, and guarantee
  3. 3 Whether abandonment of premises constituted repudiation of sublease and lease

Ratio Decidendi

Coolabah and Mr Grant failed to prove that Dib Group made misleading representations as alleged, or that they relied upon any statements or representations in entering the sublease, fuel agreement, or guarantee. Dib Group validly exercised the option to renew the sublease; Coolabah abandoned the premises and thereby repudiated the sublease. Dib Group was entitled to damages for lost rent and loss of bargain from Coolabah; cross-claim against Mr Grant failed, as he was not a guarantor under the sublease. Dib Group also repudiated the head lease, entitling Kevmark to damages for repair, lost rent, and loss of bargain. Claims for unpaid outgoings, supply of LPG AutoGas tank, and substantial...

Court Disposition

Application by Coolabah and Mr Grant dismissed; cross-claims: Dib Group succeeds against Coolabah, fails against Mr Grant and Kevmark; Kevmark succeeds against Dib Group.

Orders

  • Application brought by applicants against Dib Group wholly dismissed.
  • Coolabah and Mr Grant to pay Dib Group's costs of that Application.