Werrong Properties Pty Ltd v Standard Options Australia Pty Ltd [2006] NSWSC 272

Werrong Properties Pty Ltd v Standard Options Australia Pty Ltd [2006] NSWSC 272

On the accepted evidence, Werrong and Standard Options orally agreed to a letting of Suite 102 and to deferred payment of rent, Standard Options occupied the premises through Mr Price, its associated use of the office, its mail and business addresses, utilities and permission to Tom Price, and the ineffective oral lease at least created a tenancy at will. Non-payment of rent did not prevent a tenancy at will from arising from occupation under an agreement not intended to be gratuitous. Standard Options was therefore liable for the claimed rent. Standard Film was not proved to be a co-tenant. The fit out and furnishing reimbursement term either did not apply on its true construction after...

Jurisdiction
Australia
Judgment Date
10 April 2006
Procedural Posture
Civil Proceeding Concerning Alleged Oral Lease, Rent or Occupation Fees, and Fit Out and Furnishing Costs / Judgment After Hearing; Short Minutes of Orders to Be Brought in
Outcome
Plaintiff succeeded against the first defendant as to rent and failed on the fit out and furnishing claim; claim against the second defendant to be dismissed; short minutes of orders to be brought in and costs reserved for later argument.
Legal Topics
['tenancy at Will' 'oral Agreement for Lease' 'conveyancing Act 1919 Ss 23 C and 23 D' 'occupation Without Payment of Rent' 'fit Out and Furnishing Costs' 'exclusive Possession']
['property Law' 'leases and Tenancies' 'equity'] ['tenancy at Will' 'oral Agreement for Lease' 'conveyancing Act 1919 Ss 23 C and 23 D' 'occupation Without Payment of Rent' 'fit Out and Furnishing Costs' 'exclusive Possession']

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Procedural Posture

Civil Proceeding Concerning Alleged Oral Lease, Rent or Occupation Fees, and Fit Out and Furnishing Costs / Judgment After Hearing; Short Minutes of Orders to Be Brought in

Legal Issues

  1. 1 ['Whether Werrong and Standard Options made an oral agreement for the letting of Suite 102 for three years with an option for a further three years.' 'Whether Standard Options occupied Suite 102 and was liable for rent or occupation fees from 1 June 2000 to 26 October 2001.' 'Whether the ineffective oral agreement for lease created a tenancy at will despite no rent having been paid and despite asserted use by Standard Film.' 'Whether Standard Film was a co-tenant and liable for rent.' 'Whether Standard Options was liable to reimburse Werrong for the full cost of fitting out and furnishing Suite 102 after Werrong retained and re-let the fitted out and furnished premises.']

Ratio Decidendi

On the accepted evidence, Werrong and Standard Options orally agreed to a letting of Suite 102 and to deferred payment of rent, Standard Options occupied the premises through Mr Price, its associated use of the office, its mail and business addresses, utilities and permission to Tom Price, and the ineffective oral lease at least created a tenancy at will. Non-payment of rent did not prevent a tenancy at will from arising from occupation under an agreement not intended to be gratuitous. Standard Options was therefore liable for the claimed rent. Standard Film was not proved to be a co-tenant. The fit out and furnishing reimbursement term either did not apply on its true construction after...

Court Disposition

Plaintiff succeeded against the first defendant as to rent and failed on the fit out and furnishing claim; claim against the second defendant to be dismissed; short minutes of orders to be brought in and costs reserved for later argument.

Orders

  • ['The plaintiff is to bring in, on a date to be fixed, short minutes of orders appropriate in the light of the reasons.' 'The Court will hear the parties as to costs at that time.']