Boyded Industries Pty Ltd v Gateway Parramatta Two Pty Ltd [2020] NSWSC 1368

Boyded Industries Pty Ltd v Gateway Parramatta Two Pty Ltd [2020] NSWSC 1368

Clause 8(b) of the Deed is not collateral or accessory to clause 8(a) but forms part of an essential obligation; therefore, the penalty doctrine does not apply. Even if it did, clause 8(b) is not unconscionable or out of proportion to the defendants' interests. Relief against forfeiture is not warranted due to the plaintiff's wilful breach and lack of defendant contribution.

Parties
Plaintiff: Boyded Industries Pty Ltd; First Defendant: Gateway Parramatta Two Pty Ltd; Second Defendant: Gateway Parramatta Two Commercial Pty Ltd
Jurisdiction
Australia
Judgment Date
08 October 2020
Procedural Posture
Principal Judgment / Final Judgment After Hearing
Outcome
Amended Statement of Claim dismissed with costs.
Legal Topics
Penalties, Relief Against Forfeiture, Waiver, Election, Termination of Contract
Equity Contracts Penalties Relief Against Forfeiture Waiver Election Termination of Contract

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 20 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Boyded Industries Pty Ltd

Plaintiff

Gateway Parramatta Two Pty Ltd

First Defendant

Gateway Parramatta Two Commercial Pty Ltd

Second Defendant

Procedural Posture

Principal Judgment / Final Judgment After Hearing

Legal Issues

  1. 1 Whether clause 8(b) of the Deed is unenforceable as a penalty
  2. 2 Whether relief against forfeiture is available to the plaintiff
  3. 3 Whether the defendants waived or elected not to exercise their right to terminate the Deed

Ratio Decidendi

Clause 8(b) of the Deed is not collateral or accessory to clause 8(a) but forms part of an essential obligation; therefore, the penalty doctrine does not apply. Even if it did, clause 8(b) is not unconscionable or out of proportion to the defendants' interests. Relief against forfeiture is not warranted due to the plaintiff's wilful breach and lack of defendant contribution.

Court Disposition

Amended Statement of Claim dismissed with costs.

Orders

  • The Amended Statement of Claim is dismissed.
  • Boyded Industries Pty Ltd to pay the defendants' costs of the proceedings.