Auspods Holding Pty Ltd v MJ HQ Pty Ltd

Auspods Holding Pty Ltd, the sublessee, brought an action against MJ HQ Pty Ltd, the sublandlord, seeking damages for failure to make good under a sublease agreement. The dispute arose from the condition of the premises at the end of the sublease. The matter was heard in the Supreme Court of Queensland. The sublessee argued that the sublandlord had failed to restore the premises to the condition agreed upon in the sublease, whereas the sublandlord maintained that any necessary repairs were adequately addressed.

The court was required to determine whether the sublandlord was liable for failing to make good the premises at the end of the sublease. This involved comparing the condition of the premises at the handover date of the sublease and the date of termination of the sublease. The court needed to assess whether the comparison was different from the similar claim made by the landlord on the plaintiff in relation to the head lease. Additionally, the court had to consider the sublessee's claim for damages, which was based on a settled claim that was different from the one being made by the sublessee.

The court found that the sublessee had failed to prove the claim for failure to make good. The court noted that the comparison between the condition of the premises at the beginning and end of the sublease was not the same as the comparison made in the landlord's claim against the plaintiff. Furthermore, the court held that the damages claim was not adequately substantiated by reference to the settled claim. Consequently, the court dismissed the sublessee's claim and ordered the sublessee to pay the sublandlord's costs of the proceedings as agreed or assessed.