Belmed Pty Ltd t/as Belmont Medical Centre v Nichols Construction Pty Ltd

In the case of Belmed Pty Ltd t/as Belmont Medical Centre v Nichols Construction Pty Ltd, Belmed sought to recover a payment of $20,000 it made to Nichols as part of an agreement to extend its lease of premises at Belmont. Belmed claimed that the payment constituted "key money" which was prohibited under the Retail Shop Leases Act 1994. It also claimed that Nichols had engaged in unconscionable conduct. The legal issues before the Tribunal were whether the $20,000 payment constituted "key money" and whether Nichols had engaged in unconscionable conduct. The Tribunal found that the payment did constitute "key money" as it was an ex gratia payment made as a prerequisite and/or condition of the extension of the lease. The Tribunal also found that Nichols had engaged in unconscionable conduct by taking advantage of Belmed's desperate situation to demand the payment. However, the Tribunal dismissed Belmed's claim for compensation for the value of the fitout, equipment, and chattels left on the premises. The Tribunal ordered Nichols to refund the $20,000 payment within 28 days of the decision. There was no order as to costs.