DH MB Pty Ltd v Manning Motel Pty Ltd [2014] NSWCA 396

DH MB Pty Ltd v Manning Motel Pty Ltd [2014] NSWCA 396

The appeal failed because the subject matter, context and language of the parties objectively conveyed that DHBI was bound by its promise to purchase $4,000 per month in room sales if the respondent entered into the lease, and the respondent accepted that offer by entering the lease. The damages award for breach of the covenant to repair was also upheld because the unrepaired external stairway was unsafe, its deficiencies included structural deficiencies required to be remedied under the covenant, and the respondent's reasonable cost of alternative accommodation was recoverable.

Jurisdiction
Australia
Judgment Date
20 November 2014
Procedural Posture
Appeal / Appeal From [2013] NSWSC 1582; Appeal Dismissed
Outcome
Appeal dismissed.
Legal Topics
['collateral Contract' 'intention to Create Legal Relations' 'breach of Covenant to Repair' 'measure of Damages' 'alternative Accommodation']
['contract' 'leases'] ['collateral Contract' 'intention to Create Legal Relations' 'breach of Covenant to Repair' 'measure of Damages' 'alternative Accommodation']

Case Brief

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Procedural Posture

Appeal / Appeal From [2013] NSWSC 1582; Appeal Dismissed

Legal Issues

  1. 1 ["Whether by the agreement reached in their conversation of 27 August 2008 DHBI and the respondent intended to create legal relations upon the respondent's entry into the lease." 'Whether the primary judge erred in awarding the respondent other than nominal damages for breach of the covenant to repair.']

Ratio Decidendi

The appeal failed because the subject matter, context and language of the parties objectively conveyed that DHBI was bound by its promise to purchase $4,000 per month in room sales if the respondent entered into the lease, and the respondent accepted that offer by entering the lease. The damages award for breach of the covenant to repair was also upheld because the unrepaired external stairway was unsafe, its deficiencies included structural deficiencies required to be remedied under the covenant, and the respondent's reasonable cost of alternative accommodation was recoverable.

Court Disposition

Appeal dismissed.

Orders

  • ['Appeal dismissed.' "Appellants to pay respondent's cost of the appeal."]