187 Settlement Road v Kennards Storage Management

The case of 187 Settlement Road v Kennards Storage Management involved a dispute between a property owner and a storage company. The plaintiff, 187 Settlement Road, sought compensation for a caveat lodged by the defendant, Kennards Storage Management, which the plaintiff argued was without reasonable cause. The case was heard in the Supreme Court of Victoria. The primary legal issue before the court was whether the defendant had a caveatable interest based on its right of first and last refusal. Additionally, the court had to determine whether this right had been superseded by a subsequent agreement between the parties. The plaintiff also argued that it was entitled to restitution of a fee paid to the defendant and questioned whether rent paid by book entry should be included in the calculation of EBITDA.

The court addressed the question of whether the defendant's right of first and last refusal constituted a caveatable interest. The court found that while the existence of such an interest was uncertain, the caveat was not lodged without reasonable cause. This conclusion was based on the premise that the uncertainty surrounding the caveatable interest was sufficient to warrant the lodging of the caveat. Consequently, the plaintiff's claim for compensation was dismissed. Regarding the restitution of the fee, the court held that the plaintiff was entitled to recover the fee paid to the defendant. The court did not find it necessary to include rent paid by book entry in the calculation of EBITDA as it did not affect the overall determination of the fee repayment.

The Supreme Court of Victoria ruled that the defendant's caveat was not lodged without reasonable cause, thus dismissing the plaintiff's claim for compensation. The court also found in favour of the plaintiff on the issue of restitution, ordering the defendant to repay the fee paid. The court did not consider it necessary to include rent paid by book entry in the EBITDA calculation.