BATISTE & 2 ORS v LENIN [2002] NSWSC 233

BATISTE & 2 ORS v LENIN [2002] NSWSC 233

No misleading or deceptive representations were established, nor reliance or causation for statutory relief; there was no express or implied obligation on the lessor to perform or pay for structural repairs—lease provisions allocated repair/structural works and fire order compliance to lessee and excluded set-off or recoupment from rent. Persistent breach by the lessee in rent/outgoings and failure to perform covenanted works justified forfeiture, possession, and denial of relief against forfeiture. The lessor's cross-claim for possession and related relief succeeded.

Parties
First Plaintiff: Donna Batiste; Second Plaintiff: Hazaran Pty Ltd; Third Plaintiff: Chrysalis Holdings Pty Ltd; Defendant: Michael Petrovic Lenin
Jurisdiction
Australia
Judgment Date
12 April 2002
Procedural Posture
Equity Proceedings (landlord and Tenant Dispute With Cross Claim) / Judgment at First Instance (supreme Court of NSW Equity Division)
Outcome
Plaintiffs' claims dismissed; judgment for defendant (lessor). Judgment for cross-claimant (lessor) for possession, arrears, mesne profits, and costs; declaration that option to purchase was terminated; leave to issue writ of possession granted; further quantum issues reserved.
Legal Topics
Breach of Lease Covenants, Set Off/recoupment Claim, Misleading or Deceptive Conduct, Implied Contractual Terms, Forfeiture and Relief Against Forfeiture, Re Entry and Possession, Damages Under Fair Trading Act, Option to Purchase, Structural Repairs, Rent and Outgoings
Landlord and Tenant Equity Contract Law Breach of Lease Covenants Set Off/recoupment Claim Misleading or Deceptive Conduct Implied Contractual Terms Forfeiture and Relief Against Forfeiture +5 more

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Parties

Donna Batiste

First Plaintiff

Hazaran Pty Ltd

Second Plaintiff

Chrysalis Holdings Pty Ltd

Third Plaintiff

Michael Petrovic Lenin

Defendant

Procedural Posture

Equity Proceedings (landlord and Tenant Dispute With Cross Claim) / Judgment at First Instance (supreme Court of NSW Equity Division)

Legal Issues

  1. 1 Whether misleading or deceptive representations were made under the Fair Trading Act 1987 (NSW) in negotiating the lease
  2. 2 Whether there was an express or implied obligation on the lessor to make structural repairs or pay costs for repairs under the lease
  3. 3 Whether the lessee was entitled to recoupment or set-off against rent for expenditure on repairs

Ratio Decidendi

No misleading or deceptive representations were established, nor reliance or causation for statutory relief; there was no express or implied obligation on the lessor to perform or pay for structural repairs—lease provisions allocated repair/structural works and fire order compliance to lessee and excluded set-off or recoupment from rent. Persistent breach by the lessee in rent/outgoings and failure to perform covenanted works justified forfeiture, possession, and denial of relief against forfeiture. The lessor's cross-claim for possession and related relief succeeded.

Court Disposition

Plaintiffs' claims dismissed; judgment for defendant (lessor). Judgment for cross-claimant (lessor) for possession, arrears, mesne profits, and costs; declaration that option to purchase was terminated; leave to issue writ of possession granted; further quantum issues reserved.

Orders

  • Judgment for defendant with costs on plaintiffs' claim.
  • Judgment for cross-claimant for possession of the Great Northern Hotel, Newcastle.