The Daily Pty Limited v Wallis [2013] NSWADT 152

The Daily Pty Limited v Wallis [2013] NSWADT 152

Daily breached the covenant for quiet enjoyment by failing to take reasonable steps to repair the roof and stop water leaks, leading to substantial interference with Wallis' business; damages are awarded to Wallis, with loss broadly estimated due to evidentiary difficulties; Daily mitigated its loss by reletting within the ordinary course of business and is entitled to unpaid rent and outgoings up to new lease; claims for leasing fees and reletting legal costs are not recoverable as damages.

Parties
Applicant in 125005/respondent in 125113: The Daily Pty Limited; Respondent in 125005/applicant in 125113: Mark Wallis; Respondent in 125005/applicant in 125113: Leanne Wallis
Jurisdiction
Australia
Judgment Date
08 July 2013
Procedural Posture
Tribunal Proceeding (retail Lease Dispute) / Principal Judgment
Outcome
Partial success for each party; monetary awards to both sides; no order as to costs.
Legal Topics
Retail Leases, Quiet Enjoyment, Negligence in Repair, Mitigation of Damages, Rent Abatement
Property Law Commercial Law Retail Leases Quiet Enjoyment Negligence in Repair Mitigation of Damages Rent Abatement

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Parties

The Daily Pty Limited

Applicant in 125005/respondent in 125113

Mark Wallis

Respondent in 125005/applicant in 125113

Leanne Wallis

Respondent in 125005/applicant in 125113

Procedural Posture

Tribunal Proceeding (retail Lease Dispute) / Principal Judgment

Legal Issues

  1. 1 Whether Daily breached the covenant for quiet enjoyment by not addressing water leaks
  2. 2 Whether Daily failed to take reasonable steps to prevent disruption under Clause 15.6.4 of the lease
  3. 3 Whether Wallis was entitled to abatement or compensation for loss of business due to water leaks and collapsed ceiling

Ratio Decidendi

Daily breached the covenant for quiet enjoyment by failing to take reasonable steps to repair the roof and stop water leaks, leading to substantial interference with Wallis' business; damages are awarded to Wallis, with loss broadly estimated due to evidentiary difficulties; Daily mitigated its loss by reletting within the ordinary course of business and is entitled to unpaid rent and outgoings up to new lease; claims for leasing fees and reletting legal costs are not recoverable as damages.

Court Disposition

Partial success for each party; monetary awards to both sides; no order as to costs.

Orders

  • Leanne Wallis and Mark Wallis are each jointly and severally liable to pay to The Daily Pty Limited amounts for unpaid rent and outgoings, interest, and reduced legal costs;
  • The Daily Pty Limited is liable to pay Leanne Wallis and Mark Wallis $55,000.00 as damages;