Smart Dollars Tamworth Pty Ltd v Corpique No.18 Pty Ltd [2024] NSWSC 1211

Smart Dollars Tamworth Pty Ltd v Corpique No.18 Pty Ltd [2024] NSWSC 1211

Smart Dollars Tamworth Pty Ltd breached the lease by failing to carry out required repairs and engaging in unpermitted works, with liability accepted through conduct and formal undertakings. Bao Kun Lin is liable for the loss as guarantor under the lease—he agreed to the guarantee, was a party to undertakings and consent orders, and took no effective defence. Damages are quantified at $2,065,307.52 inclusive of GST, reflecting the reasonable costs to rectify the damage as established by expert evidence.

Parties
Plaintiff / First Cross Defendant: Smart Dollars Tamworth Pty Ltd; Defendant / Cross Claimant: Corpique No.18 Pty Ltd; Second Cross Defendant: Bao Kun Lin; Fourth Cross Defendant: Bingqin Liu
Jurisdiction
Australia
Judgment Date
25 September 2024
Procedural Posture
Lease Dispute / Cross Claim for Damages / Final Judgment After Hearing
Outcome
Judgment for cross-claimant against the second cross-defendant (Bao Kun Lin) for the full damages sum; costs to the cross-claimant.
Legal Topics
Repairs and Maintenance of Leased Premises, Guarantee and Indemnity Liability Under Lease, Quantification of Damages
Equity Real Property Leases and Tenancies Repairs and Maintenance of Leased Premises Guarantee and Indemnity Liability Under Lease Quantification of Damages

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Parties

Smart Dollars Tamworth Pty Ltd

Plaintiff / First Cross Defendant

Corpique No.18 Pty Ltd

Defendant / Cross Claimant

Bao Kun Lin

Second Cross Defendant

Bingqin Liu

Fourth Cross Defendant

Procedural Posture

Lease Dispute / Cross Claim for Damages / Final Judgment After Hearing

Legal Issues

  1. 1 Whether Smart Dollars Tamworth Pty Ltd breached the lease by failing to repair and/or carrying out unpermitted works
  2. 2 Whether Bao Kun Lin is liable under the guarantee and indemnity provisions of the lease for those breaches
  3. 3 Proper quantification of damages

Ratio Decidendi

Smart Dollars Tamworth Pty Ltd breached the lease by failing to carry out required repairs and engaging in unpermitted works, with liability accepted through conduct and formal undertakings. Bao Kun Lin is liable for the loss as guarantor under the lease—he agreed to the guarantee, was a party to undertakings and consent orders, and took no effective defence. Damages are quantified at $2,065,307.52 inclusive of GST, reflecting the reasonable costs to rectify the damage as established by expert evidence.

Court Disposition

Judgment for cross-claimant against the second cross-defendant (Bao Kun Lin) for the full damages sum; costs to the cross-claimant.

Orders

  • The second cross-defendant to pay the cross-claimant damages in the sum of $2,065,307.52 inclusive of GST.
  • The second cross-defendant to pay the cross-claimant's costs as agreed or assessed.