Steel & Stuff Pty Ltd v Fallon Street Properties Pty Ltd [2005] NSWSC 1148

Steel & Stuff Pty Ltd v Fallon Street Properties Pty Ltd [2005] NSWSC 1148

The Court found there was an oral agreement for half rent to apply until completion of building works, and an implied term that the landlord would complete the works within a reasonable time. These works were never completed, and the Plaintiff’s relocation and associated losses were foreseeable consequences of this breach. The Plaintiff was entitled to damages, which could be set off against rent; the Defendant’s claim for possession and outstanding rent was refused.

Parties
Plaintiff/cross Defendant: Steel & Stuff Pty Ltd; Defendant/cross Claimant: Fallon Street Properties Pty Ltd
Jurisdiction
Australia
Judgment Date
04 November 2005
Procedural Posture
Civil (equity Landlord and Tenant) / Trial Judgment
Outcome
Plaintiff's claim for damages upheld; Defendant's claim for possession refused.
Legal Topics
Oral Lease Variation, Implied Terms in Leases, Damages for Breach of Lease, Set Off of Damages Against Rent, Possession for Breach of Lease
Landlord and Tenant Contract Oral Lease Variation Implied Terms in Leases Damages for Breach of Lease Set Off of Damages Against Rent Possession for Breach of Lease

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Steel & Stuff Pty Ltd

Plaintiff/cross Defendant

Fallon Street Properties Pty Ltd

Defendant/cross Claimant

Procedural Posture

Civil (equity Landlord and Tenant) / Trial Judgment

Legal Issues

  1. 1 Whether there was an oral agreement that only half rent would be payable until building work was completed
  2. 2 Whether a term should be implied requiring the lessor to complete the building works within a reasonable time
  3. 3 Whether the tenant is liable for full rent despite incomplete building works

Ratio Decidendi

The Court found there was an oral agreement for half rent to apply until completion of building works, and an implied term that the landlord would complete the works within a reasonable time. These works were never completed, and the Plaintiff’s relocation and associated losses were foreseeable consequences of this breach. The Plaintiff was entitled to damages, which could be set off against rent; the Defendant’s claim for possession and outstanding rent was refused.

Court Disposition

Plaintiff's claim for damages upheld; Defendant's claim for possession refused.

Orders

  • Damages to be assessed as per Plaintiff’s schedule, including costs for relocation, extra rent, security, roller doors, and theft losses;
  • Set-off allowed;