Young v Lamb (No.2) [2001] NSWSC 1014

Young v Lamb (No.2) [2001] NSWSC 1014

The defendants' repudiation deprived the plaintiff of rent for the renewed term, but damages had to reflect the rent that would have been payable under the lease, including an abatement from $3,500 to $1,000 per month while water damage made the premises unfit for the permitted retail use. The defendants failed to prove that the plaintiff acted unreasonably in mitigating loss, because the plaintiff had advertised, used agents, made direct approaches, placed signs, and maintained the premises sufficiently in the circumstances. Judgment was therefore entered for the plaintiff for loss of rent of $106,148 plus interest of $14,481.

Jurisdiction
Australia
Judgment Date
09 November 2001
Procedural Posture
Contract Assessment of Damages for Breach of Agreement to Renew Lease / Assessment of Damages After Court of Appeal Remittal
Outcome
Judgment for the plaintiff in the sum of $120,629.
Legal Topics
['repudiation of Agreement for Lease' 'loss of Rent' 'rent Abatement' 'mitigation of Loss' 'interest on Damages']
['contract Law' 'leases' 'damages'] ['repudiation of Agreement for Lease' 'loss of Rent' 'rent Abatement' 'mitigation of Loss' 'interest on Damages']

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Procedural Posture

Contract Assessment of Damages for Breach of Agreement to Renew Lease / Assessment of Damages After Court of Appeal Remittal

Legal Issues

  1. 1 ["What damages were payable for the defendants' repudiation of the agreement to renew the lease." 'Whether rent during the renewed term would have abated because damage to the premises made them unfit for the permitted use.' 'Whether the plaintiff failed to mitigate loss by not re-letting the premises or by failing to maintain the premises.']

Ratio Decidendi

The defendants' repudiation deprived the plaintiff of rent for the renewed term, but damages had to reflect the rent that would have been payable under the lease, including an abatement from $3,500 to $1,000 per month while water damage made the premises unfit for the permitted retail use. The defendants failed to prove that the plaintiff acted unreasonably in mitigating loss, because the plaintiff had advertised, used agents, made direct approaches, placed signs, and maintained the premises sufficiently in the circumstances. Judgment was therefore entered for the plaintiff for loss of rent of $106,148 plus interest of $14,481.

Court Disposition

Judgment for the plaintiff in the sum of $120,629.

Orders

  • ['Judgment for the plaintiff for $120,629.' 'Interest on the unpaid judgment debt will accrue in accordance with the Supreme Court Rules.' 'The Court will hear submissions as to costs.']