Baccello Pty Ltd as trustee for the Mondello Family Trust v Qin Chen as trustee for the Cao Family Trust

Baccello Pty Ltd, as trustee for the Mondello Family Trust, filed a lawsuit against Qin Chen, as trustee for the Cao Family Trust, to determine the enforceability of a lease agreement for premises used as a brothel. The court was tasked with deciding whether the lease was void due to the unlawful use of the property. The dispute was heard in the Supreme Court of Western Australia.

The primary legal issue the court had to resolve was whether the lease agreement was void under section 190 of the Criminal Code (WA), which states that a contract or agreement made for the purpose of committing a crime is void. The court needed to determine if the plaintiff was aware of the unlawful use of the property and if the lease was void in whole or in part.

The court found that the plaintiff was not aware of the use of the leased premises as a brothel and did not become aware of it during the lease period. Therefore, the court held that the lease was not void in whole or in part, and the agreement was enforceable. The court emphasised that each case turns on its own facts and that the lack of knowledge by the plaintiff was a crucial factor in its decision.

The court made an order that the plaintiff was not aware and did not become aware of the usage of the leased premises as a brothel. Additionally, the court ruled that the lease was not void in whole or in part and was enforceable.