Dogrow Pty Ltd v Teakdale Pty Ltd [2013] NSWSC 726

Dogrow Pty Ltd v Teakdale Pty Ltd [2013] NSWSC 726

On the proper construction of the lease, there is no clause requiring the lessee to maintain a minimum number of gaming machine entitlements connected with the liquor licence, and the relevant clauses (6.01 and 6.13) do not preclude the transfer or disposal of such entitlements; thus, the lessee is entitled, to the exclusion of the lessor, to deal with the entitlements, subject to regulatory approval.

Parties
First Plaintiff: Dogrow Pty Ltd; Second Plaintiff: James Frederick Smithers; Defendant: Teakdale Pty Ltd
Jurisdiction
Australia
Judgment Date
31 May 2013
Procedural Posture
Civil / Final Judgment
Outcome
Declaration granted in favour of the plaintiffs; costs ordered against defendant.
Legal Topics
Lease Construction, Gaming Machine Entitlements, Liquor Licensing
Property Law Commercial Law Lease Construction Gaming Machine Entitlements Liquor Licensing

Case Brief

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Parties

Dogrow Pty Ltd

First Plaintiff

James Frederick Smithers

Second Plaintiff

Teakdale Pty Ltd

Defendant

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Whether the lease requires the lessee to maintain a minimum number of gaming machine entitlements connected with the lessee's liquor licence
  2. 2 Whether the lessee may sell, transfer, remove or otherwise deal with or dispose of gaming machine entitlements allocated in respect of the hotel licence

Ratio Decidendi

On the proper construction of the lease, there is no clause requiring the lessee to maintain a minimum number of gaming machine entitlements connected with the liquor licence, and the relevant clauses (6.01 and 6.13) do not preclude the transfer or disposal of such entitlements; thus, the lessee is entitled, to the exclusion of the lessor, to deal with the entitlements, subject to regulatory approval.

Court Disposition

Declaration granted in favour of the plaintiffs; costs ordered against defendant.

Orders

  • Declares that upon the proper construction of the Lease the plaintiffs, to the exclusion of the defendant, are entitled, subject to approval of the Independent Liquor and Gaming Authority, to sell, transfer, remove or otherwise deal with or dispose of gaming machine entitlements allocated in respect of the hotel...
  • Orders the defendant to pay the plaintiff's costs on the usual basis.