FALLON STREET PROPERTIES PTY LTD v STEEL & STUFF PTY LTD [2006] NSWCA 296

FALLON STREET PROPERTIES PTY LTD v STEEL & STUFF PTY LTD [2006] NSWCA 296

The oral agreement for reduced rent until completion, the parties' expectation that the Appellant would complete the works, and the statutory context under the Environmental Planning and Assessment Act 1979 (NSW) supported an implied term requiring the Appellant to take steps necessary to ensure lawful occupation in accordance with the development consent within a reasonable time; that term was necessary for business efficacy and not inconsistent with the lease. The Appellant could not challenge relocation damages on a reasonableness basis not run at trial, but increased rent damages had to be confined to the unexpired term of the original lease because recovery beyond that date was...

Jurisdiction
Australia
Judgment Date
02 November 2006
Procedural Posture
Appeal From Supreme Court of New South Wales, Equity Division Judgment for Damages for Breach of Lease / Court of Appeal
Outcome
Appeal allowed in part; damages reduced; otherwise appeal dismissed.
Legal Topics
['lease' 'implied Terms' 'breach of Lease' 'occupation Certificate' 'relocation Damages' 'increased Rent' 'new Point on Appeal' 'costs']
['property Law' 'contract Law' 'damages'] ['lease' 'implied Terms' 'breach of Lease' 'occupation Certificate' 'relocation Damages' 'increased Rent' 'new Point on Appeal' 'costs']

Case Brief

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Procedural Posture

Appeal From Supreme Court of New South Wales, Equity Division Judgment for Damages for Breach of Lease / Court of Appeal

Legal Issues

  1. 1 ['Whether the lease was subject to an implied term that Fallon Street Properties Pty Ltd would carry out the building work identified in the interim occupation certificate within a reasonable time.' 'Whether damages for relocation to new premises and increased rent were unreasonable because they exceeded the cost of completing the construction work on the leased premises.' 'Whether the period for which increased rent was recoverable should extend beyond the termination date of the existing lease.' 'Who should bear the costs of the appeal.']

Ratio Decidendi

The oral agreement for reduced rent until completion, the parties' expectation that the Appellant would complete the works, and the statutory context under the Environmental Planning and Assessment Act 1979 (NSW) supported an implied term requiring the Appellant to take steps necessary to ensure lawful occupation in accordance with the development consent within a reasonable time; that term was necessary for business efficacy and not inconsistent with the lease. The Appellant could not challenge relocation damages on a reasonableness basis not run at trial, but increased rent damages had to be confined to the unexpired term of the original lease because recovery beyond that date was...

Court Disposition

Appeal allowed in part; damages reduced; otherwise appeal dismissed.

Orders

  • ['Allow the appeal in part and set aside order 5 made in the Equity Division on 11 November 2005 and entered on 6 December 2005.' 'In lieu thereof, give judgment for the Respondent (the plaintiff below) in the sum of $342,824.' 'Otherwise dismiss the appeal.' "Order the Appellant to pay the Respondent's costs of the...