Szabo & Associates News & Updates

The NSW Court of Appeal has recently considered the effect of a market rent review clause in Strike Australia Pty Ltd v Data Base Corporate Pty Ltd (2019).

Judicial review is a review by a court which tests the legality of a decision. If someone wishes to seek judicial review of a decision, it is important to comply with any time limits.

Background

A demolition clause is a clause in a retail lease that provides that the lease can be terminated early by the landlord if it decides to demolish, or substantially renovate, a property. As long as the landlord complies with the requirements of section 35 of the Retail Lease Act 1994 (NSW) they are entitled to terminate the lease and only pay a limited amount in respect of the tenant's fit-out costs but not, for example, the costs of moving, loss of profits, or any subsequent increase in rent.

Background

Ms Saffioti owns a block of land in Kiama on the southern coast of New South Wales. Except for her existing small dwelling, the rest of the block of land is covered in native vegetation. Her initial development proposal was to build another small dwelling with a garage on another part of the block. The Council did not contest that Ms Saffioti had an existing use right in respect of her existing property but argued that this could not be extended to the entire block because new zoning laws only allowed developments satisfying environmental conservation requirements.

In the recent case of Kegran Pty Ltd v Warrik Pty Ltd (2018) NSWSC 1357, the Supreme Court had to determine whether there had been a valid exercise of an option to renew a commercial lease even though the method used did not appear to meet the conditions set out in the contract. The lessor had challenged the exercise of an option on the basis that the notice had not been properly served.