Loretta Suiwen Shen, Sarah Bonita, Joshua Lie, Timothy Go [2015] NSWCATCD 49

Loretta Suiwen Shen, Sarah Bonita, Joshua Lie, Timothy Go [2015] NSWCATCD 49

The unregistered lease between Bonita and the original owner created an equitable lease that survived the transfer to Shen; Bonita is estopped from denying her liability as lessee, and Lie, as guarantor, is liable to Shen for damages arising from breach; landlord was obliged to mitigate, and damages are assessed as four months' rent less credit, plus interest.

Parties
Applicant: Loretta Suiwen Shen; First Respondent: Sarah Bonita; Second Respondent: Joshua Lie
Jurisdiction
Australia
Judgment Date
25 June 2015
Procedural Posture
Application for Original Decision / Final Decision
Outcome
Sarah Bonita and Joshua Lie are jointly and severally liable to pay Loretta Shen damages plus interest; no order as to costs, subject to submissions.
Legal Topics
Unregistered Lease, Indefeasibility of Title, Duty to Mitigate Loss, Guarantor Liability, Estoppel
Property Law Contract Law Unregistered Lease Indefeasibility of Title Duty to Mitigate Loss Guarantor Liability Estoppel

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Parties

Loretta Suiwen Shen

Applicant

Sarah Bonita

First Respondent

Joshua Lie

Second Respondent

Procedural Posture

Application for Original Decision / Final Decision

Legal Issues

  1. 1 Whether the unregistered lease was destroyed upon registration of transfer to the new proprietor
  2. 2 Whether there existed an equitable lease enforceable against the transferee
  3. 3 Whether Bonita or Lie was the lessee under the Unregistered Lease

Ratio Decidendi

The unregistered lease between Bonita and the original owner created an equitable lease that survived the transfer to Shen; Bonita is estopped from denying her liability as lessee, and Lie, as guarantor, is liable to Shen for damages arising from breach; landlord was obliged to mitigate, and damages are assessed as four months' rent less credit, plus interest.

Court Disposition

Sarah Bonita and Joshua Lie are jointly and severally liable to pay Loretta Shen damages plus interest; no order as to costs, subject to submissions.

Orders

  • Sarah Bonita and Joshua Lie each are jointly and severally liable to pay to Loretta Shen $27,166.69 plus interest at 12% per annum from 11 July 2013.
  • Subject to written submissions, no order as to costs.