Chittick v Galea [2007] NSWSC 38

Chittick v Galea [2007] NSWSC 38

Relief against forfeiture was granted because, although the plaintiffs were in breach of their payment obligations under the lease, the lessors could be put in the same position as before forfeiture by payment of rent and GST arrears, the defaults were remedied, and the circumstances were not sufficiently grave to justify refusal of relief. The Notice to Quit effectively terminated the lease, but the Court exercised its discretion to grant relief conditional on cheques being honoured.

Jurisdiction
Australia
Judgment Date
06 February 2007
Procedural Posture
Equity Proceedings / Judgment at First Instance
Outcome
Relief against forfeiture granted to plaintiffs, subject to cheques being honoured; limited costs awarded to plaintiffs.
Legal Topics
['lease' 'relief Against Forfeiture' 'breach of Covenant to Pay Rent' 'notice to Quit']
['property Law' 'equity'] ['lease' 'relief Against Forfeiture' 'breach of Covenant to Pay Rent' 'notice to Quit']

Case Brief

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Procedural Posture

Equity Proceedings / Judgment at First Instance

Legal Issues

  1. 1 ['Whether relief against forfeiture should be granted to lessees for non-payment of rent and GST under the lease' 'Whether the Notice to Quit was effective to terminate the lease' 'Whether the lessors waived breaches or were estopped from enforcing them']

Ratio Decidendi

Relief against forfeiture was granted because, although the plaintiffs were in breach of their payment obligations under the lease, the lessors could be put in the same position as before forfeiture by payment of rent and GST arrears, the defaults were remedied, and the circumstances were not sufficiently grave to justify refusal of relief. The Notice to Quit effectively terminated the lease, but the Court exercised its discretion to grant relief conditional on cheques being honoured.

Court Disposition

Relief against forfeiture granted to plaintiffs, subject to cheques being honoured; limited costs awarded to plaintiffs.

Orders

  • ['Plaintiffs granted relief against forfeiture of lease number 6635484E conditional on non-presented cheques being honoured upon presentment.' 'Plaintiffs to have 50% of their costs, subject to further submissions on costs if made in writing the day after judgment.']