Stormriders P/L & Ors v Copperart P/L [2004] NSWSC 809

Stormriders P/L & Ors v Copperart P/L [2004] NSWSC 809

The lease failed to reflect the common intention of both parties regarding rent review, due to drafting errors. The Court found convincing evidence of a continuing common intention up until execution; thus, rectification was ordered to amend the schedule of rent review dates and methods, excluding two specific dates, to give effect to the parties’ agreement. Even if there were not a common mistake, the plaintiffs were entitled to rectification as the defendant took unconscientious advantage of the plaintiffs’ mistake.

Parties
Plaintiff: Stormriders Pty Limited & 2 Ors; Defendant: Copperart Pty Limited
Jurisdiction
Australia
Judgment Date
26 August 2004
Procedural Posture
Equity / Judgment
Outcome
rectification granted; costs order against defendant
Legal Topics
Rectification, Mistake in Contract, Lease, Rent Review
Contract Law Property Law Equity Rectification Mistake in Contract Lease Rent Review

Case Brief

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Parties

Stormriders Pty Limited & 2 Ors

Plaintiff

Copperart Pty Limited

Defendant

Procedural Posture

Equity / Judgment

Legal Issues

  1. 1 Whether the lease should be rectified to reflect the common intention of the parties regarding rent review dates and methods
  2. 2 Whether the plaintiffs are entitled to rectification for unilateral or mutual mistake

Ratio Decidendi

The lease failed to reflect the common intention of both parties regarding rent review, due to drafting errors. The Court found convincing evidence of a continuing common intention up until execution; thus, rectification was ordered to amend the schedule of rent review dates and methods, excluding two specific dates, to give effect to the parties’ agreement. Even if there were not a common mistake, the plaintiffs were entitled to rectification as the defendant took unconscientious advantage of the plaintiffs’ mistake.

Court Disposition

rectification granted; costs order against defendant

Orders

  • Not necessary to make declaration sought in para 1 of the summons
  • Order in terms of para 2 of the summons as amended, excluding rent review dates 1.12.2006 and 1.12.2011