Gizah Pty Limited -v- AXA Trustees Limited [2001] NSWADT 116

Gizah Pty Limited -v- AXA Trustees Limited [2001] NSWADT 116

The Tribunal found that the Respondent, through its agent, made false and misleading representations to the Applicant about exclusivity of menu items, non-renewal of a competing lease, and refurbishment plans, which induced the Applicant to enter into the lease. These statements were made with knowledge of their...

Source-derived case information.

Parties
Applicant: Gizah Pty Limited; Respondent: AXA Trustees Limited
Jurisdiction
Australia
Judgment Date
12 July 2001
Procedural Posture
Claim for Compensation for Pre Lease Misrepresentations and Declaration of Rights, Obligations and Liabilities Under a Lease / Principal Matter Judgment
Outcome
Applicant's claim for compensation is upheld; lease terminated; damages awarded
Legal Topics
Retail Leases, Misrepresentation, Damages, Termination of Lease
Commercial Law Property Law Retail Leases Misrepresentation Damages Termination of Lease

Source-derived case record

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Parties

Gizah Pty Limited

Applicant

AXA Trustees Limited

Respondent

Procedural Posture

Claim for Compensation for Pre Lease Misrepresentations and Declaration of Rights, Obligations and Liabilities Under a Lease / Principal Matter Judgment

Legal Issues

  1. 1 Whether false or misleading representations were made by the Respondent or its representative prior to lease execution
  2. 2 Whether such representations caused the Applicant to enter the lease
  3. 3 Whether the Respondent is liable for compensation under Retail Leases Act 1994 s 10(1)

Ratio Decidendi

The Tribunal found that the Respondent, through its agent, made false and misleading representations to the Applicant about exclusivity of menu items, non-renewal of a competing lease, and refurbishment plans, which induced the Applicant to enter into the lease. These statements were made with knowledge of their falsity. As such, the Respondent is liable under s 10(1) of the Retail Leases Act 1994 to pay reasonable compensation for damages suffered, assessed as set-up costs and wages liability, less accumulated profit.

Court Disposition

Applicant's claim for compensation is upheld; lease terminated; damages awarded

Orders

  • The lease executed by the Applicant as Lessee and the Respondent as Lessor in respect of Shop 8, Food Court, Level 7, MMI Centre, 2 Market Street, Sydney is terminated as at the date of this order.
  • The Applicant vacate the said shop as at the date of this order.