Papago Pty Limited v Smiths OM Pty Limited [2015] NSWDC 435

Papago Pty Limited v Smiths OM Pty Limited [2015] NSWDC 435

Because the first defendant failed to pay rent, GST and outgoings and vacated the premises, the plaintiff validly terminated the lease on 17 June 2015. The plaintiff mitigated its loss by advertising and securing a new tenant from 1 December 2015, and suffered loss equal to five months' rent from July to November 2015 plus the corresponding outgoings. GST was not recoverable on damages for unpaid rent after termination.

Jurisdiction
Australia
Judgment Date
15 December 2015
Procedural Posture
Civil Claim for Damages for Breach of Lease and Guarantee / Default Judgment With Damages to Be Assessed; Principal Judgment
Outcome
Judgment for the plaintiff against the first and second defendants for damages in the sum of $65,687.52, with costs.
Legal Topics
['breach of Lease' 'termination of Lease' 'assessment of Damages' 'lost Rent' 'unpaid Outgoings' 'goods and Services Tax']
['leases and Tenancies' 'contract Law' 'civil Procedure'] ['breach of Lease' 'termination of Lease' 'assessment of Damages' 'lost Rent' 'unpaid Outgoings' 'goods and Services Tax']

Case Brief

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Procedural Posture

Civil Claim for Damages for Breach of Lease and Guarantee / Default Judgment With Damages to Be Assessed; Principal Judgment

Legal Issues

  1. 1 ['Whether the lease was validly terminated after the first defendant failed to pay rent and outgoings and vacated the premises.' 'Whether the plaintiff was entitled to damages for lost rent for the period from termination until the commencement of the new lease.' 'Whether the plaintiff was entitled to recover unpaid outgoings for the same period.' 'Whether GST should be awarded on damages for unpaid rent after termination of the lease.']

Ratio Decidendi

Because the first defendant failed to pay rent, GST and outgoings and vacated the premises, the plaintiff validly terminated the lease on 17 June 2015. The plaintiff mitigated its loss by advertising and securing a new tenant from 1 December 2015, and suffered loss equal to five months' rent from July to November 2015 plus the corresponding outgoings. GST was not recoverable on damages for unpaid rent after termination.

Court Disposition

Judgment for the plaintiff against the first and second defendants for damages in the sum of $65,687.52, with costs.

Orders

  • ['Judgment in favour of the plaintiff against the first and second defendants for damages in the sum of $65,687.52.' "Defendants to pay the plaintiff's costs."]