Ning v Cong [2022] NSWCATAP 176

Ning v Cong [2022] NSWCATAP 176

Because the appellants (lessors) refused to negotiate in good faith in response to a request from the respondents (lessees) for rent relief and failed to comply with the obligations under the Retail and Other Commercial Leases (COVID-19) Regulation (No 2) 2020, they are barred from taking prescribed action to recover the disputed rent and associated costs for the relevant period.

Parties
First Appellant: Helen Ning; Second Appellant: Max Fei; First Respondent: Scott Cong; Second Respondent: Hong Zhao
Jurisdiction
Australia
Judgment Date
26 May 2022
Procedural Posture
Internal Appeal / Appeal Panel Disposition
Outcome
Leave to appeal refused; appeal dismissed.
Legal Topics
Retail Leases, COVID 19 Regulation, Renegotiation of Rent, Impact of Failure to Negotiate, Good Faith in Leasing
Commercial Law Property Law Retail Leases COVID 19 Regulation Renegotiation of Rent Impact of Failure to Negotiate Good Faith in Leasing

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Parties

Helen Ning

First Appellant

Max Fei

Second Appellant

Scott Cong

First Respondent

Hong Zhao

Second Respondent

Procedural Posture

Internal Appeal / Appeal Panel Disposition

Legal Issues

  1. 1 Whether landlord negotiated rent relief as required under COVID-19 regulations
  2. 2 Whether failure to negotiate in good faith prevented recovery of accrued rent and costs

Ratio Decidendi

Because the appellants (lessors) refused to negotiate in good faith in response to a request from the respondents (lessees) for rent relief and failed to comply with the obligations under the Retail and Other Commercial Leases (COVID-19) Regulation (No 2) 2020, they are barred from taking prescribed action to recover the disputed rent and associated costs for the relevant period.

Court Disposition

Leave to appeal refused; appeal dismissed.

Orders

  • Leave to appeal the decision be refused;
  • The appeal be dismissed.