PT Ltd v Spuds Surf Chatswood Pty Ltd [2013] NSWCA 446

PT Ltd v Spuds Surf Chatswood Pty Ltd [2013] NSWCA 446

The Appeal Panel was entitled to find that PT Ltd engaged in unconscionable conduct under s 62B of the Retail Leases Act 1994 (NSW) by failing to enforce kiosk height restrictions, exercising superior bargaining power, and applying unfair tactics, even though no individual was found to have acted dishonestly. However, the Appeal Panel denied the parties natural justice by assessing damages on a new basis not argued by either, requiring remittal for reassessment of damages.

Parties
Appellant/cross Respondent: PT Ltd; Respondent/cross Appellant: Spuds Surf Chatswood Pty Ltd
Jurisdiction
Australia
Judgment Date
18 December 2013
Procedural Posture
Appeal and Cross Appeal From Administrative Decisions Tribunal Appeal Panel / Court of Appeal (principal Judgment, Final Orders)
Outcome
Appeal and cross-appeal allowed in part; finding of unconscionability upheld; damages set aside and remitted for reassessment.
Legal Topics
Unconscionable Conduct, Obstruction of Sightlines, Procedural Fairness, Damages Assessment, Interpretation of Industry Codes
Landlord and Tenant Retail Leases Administrative Law Unconscionable Conduct Obstruction of Sightlines Procedural Fairness Damages Assessment Interpretation of Industry Codes

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Parties

PT Ltd

Appellant/cross Respondent

Spuds Surf Chatswood Pty Ltd

Respondent/cross Appellant

Procedural Posture

Appeal and Cross Appeal From Administrative Decisions Tribunal Appeal Panel / Court of Appeal (principal Judgment, Final Orders)

Legal Issues

  1. 1 Whether PT Ltd engaged in unconscionable conduct under s 62B of the Retail Leases Act 1994 (NSW)
  2. 2 Whether procedural fairness was denied by the adoption of an unargued basis for damages
  3. 3 Whether a finding of unconscionable conduct against a corporation requires finding dishonesty or bad faith by individual officers

Ratio Decidendi

The Appeal Panel was entitled to find that PT Ltd engaged in unconscionable conduct under s 62B of the Retail Leases Act 1994 (NSW) by failing to enforce kiosk height restrictions, exercising superior bargaining power, and applying unfair tactics, even though no individual was found to have acted dishonestly. However, the Appeal Panel denied the parties natural justice by assessing damages on a new basis not argued by either, requiring remittal for reassessment of damages.

Court Disposition

Appeal and cross-appeal allowed in part; finding of unconscionability upheld; damages set aside and remitted for reassessment.

Orders

  • Set aside Order 1 made by the Appeal Panel on 3 October 2012.
  • Set aside Orders 1 and 2 made by the Appeal Panel on 1 March 2013.