Synergy Scaffolding Holdings Pty Ltd v Goodman Funds Management Australia Limited as trustee for GAI1 RPF Subtrust of the Hayesbery [2023] NSWSC 538

Synergy Scaffolding Holdings Pty Ltd v Goodman Funds Management Australia Limited as trustee for GAI1 RPF Subtrust of the Hayesbery [2023] NSWSC 538

Section 130 of the Conveyancing Act 1919 (NSW) was not engaged because Goodman terminated the head lease through acceptance of repudiation, exercising common law rights rather than a right of re-entry or forfeiture. Therefore, the sublessees (the plaintiffs) were not entitled to relief against forfeiture under s 130.

Parties
First Plaintiff: Synergy Scaffolding Holdings Pty Ltd; Second Plaintiff: MRL Technologies Pty Ltd; First Defendant: Goodman Funds Management Australia Limited as trustee for GAI1 RPF Subtrust; Second Defendant: The Trust Company Limited
Jurisdiction
Australia
Judgment Date
22 May 2023
Procedural Posture
Equity Real Property List / Principal Judgment
Outcome
Plaintiffs' summons dismissed with costs
Legal Topics
Relief Against Forfeiture, Forfeiture of Lease, Repudiation, Termination of Lease, Conditions of New Lease, Sublessee Rights
Equity Leases and Tenancies Contracts Real Property Relief Against Forfeiture Forfeiture of Lease Repudiation Termination of Lease +2 more

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Parties

Synergy Scaffolding Holdings Pty Ltd

First Plaintiff

MRL Technologies Pty Ltd

Second Plaintiff

Goodman Funds Management Australia Limited as trustee for GAI1 RPF Subtrust

First Defendant

The Trust Company Limited

Second Defendant

Procedural Posture

Equity Real Property List / Principal Judgment

Legal Issues

  1. 1 Whether s 130 of the Conveyancing Act 1919 (NSW) applies where the head lessor terminates a lease for repudiation
  2. 2 Whether sublessees are entitled to relief under s 130 if head lease terminated for repudiation, not forfeiture
  3. 3 What conditions should apply if relief is granted (rent, arrears, rectification obligations, security)

Ratio Decidendi

Section 130 of the Conveyancing Act 1919 (NSW) was not engaged because Goodman terminated the head lease through acceptance of repudiation, exercising common law rights rather than a right of re-entry or forfeiture. Therefore, the sublessees (the plaintiffs) were not entitled to relief against forfeiture under s 130.

Court Disposition

Plaintiffs' summons dismissed with costs

Orders

  • Plaintiffs' summons dismissed with costs.
  • Order 4 of Kunc J on 19 September 2022, as extended, is vacated.