United Petroleum Pty Ltd v Bousaleh [2018] NSWSC 1324

United Petroleum Pty Ltd v Bousaleh [2018] NSWSC 1324

The covenant to repair and maintain the premises includes the underground fuel tanks. The lessor does not have an obligation to repair the tanks absent explicit contractual provisions. The plaintiff validly exercised the first option to renew the lease, so the notice of termination is invalid. The plaintiff did not prove entitlement to damages, as evidence did not establish loss attributable to breach by the defendants.

Parties
Plaintiff: United Petroleum Pty Ltd; First Defendant: Salah Bousaleh; Second Defendant: Gail Christine Bousaleh
Jurisdiction
Australia
Judgment Date
30 August 2018
Procedural Posture
Principal Judgment / Undefended Hearing; Orders and Declarations Made
Outcome
Orders made for specific performance; claim for damages dismissed
Legal Topics
Leases, Covenant to Repair, Specific Performance, Renewal of Lease, Damages for Breach, Quiet Enjoyment
Equity Land Law Leases Covenant to Repair Specific Performance Renewal of Lease Damages for Breach Quiet Enjoyment

Case Brief

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Parties

United Petroleum Pty Ltd

Plaintiff

Salah Bousaleh

First Defendant

Gail Christine Bousaleh

Second Defendant

Procedural Posture

Principal Judgment / Undefended Hearing; Orders and Declarations Made

Legal Issues

  1. 1 Whether the covenant to keep the premises in good and substantial repair extends to underground fuel tanks
  2. 2 Whether the lessor has obligation to repair underground fuel tanks
  3. 3 Whether the lessee validly exercised the option to renew the lease

Ratio Decidendi

The covenant to repair and maintain the premises includes the underground fuel tanks. The lessor does not have an obligation to repair the tanks absent explicit contractual provisions. The plaintiff validly exercised the first option to renew the lease, so the notice of termination is invalid. The plaintiff did not prove entitlement to damages, as evidence did not establish loss attributable to breach by the defendants.

Court Disposition

Orders made for specific performance; claim for damages dismissed

Orders

  • Declaration that plaintiff validly exercised option to renew lease
  • Order for specific performance requiring defendants to execute lease for period 3 October 2015 to 2 October 2020, with two further options to renew