Burke v Turina

Case [2011] QCATA 75


CITATION: Burke v Turina [2011] QCATA 075
APPELLANT: Anthony Burke
(Appellant)
v
RESPONDENT: Rocco and Mara Turina
(Respondents)
APPLICATION NUMBER:  APL303-10
MATTER TYPE:        Appeals
HEARING DATE:     On the papers
HEARD AT:  Brisbane
DECISION OF: Judge Fleur Kingham
Deputy President
DELIVERED ON: 29 March 2011
DELIVERED AT:      Brisbane

ORDERS MADE:

1.    The application for leave to appeal is granted.

2.    The appeal is allowed.

3.    The decision in Minor Civil Dispute 25 of 2010 made on 15 October 2010 in Hervey Bay is set aside.

4.    Mr Burke must pay Mr and Mrs Turina the sum of $1,861.71.

CATCHWORDS : 

Queensland Civil and Administrative Tribunal Act 2009, ss 201(1)-(2), 142(3)(a)(i)

Retail Shop Leases Act 1994, ss 48(1)(a), 19, 20, sch

Queensland Civil and Administrative Tribunal Rules 2009, r 84

To v Choi [2011] QSC 2 applied

Vivlios v Votino [2010] QCATA 42 cited

REASONS FOR DECISION

  1. Mr and Mrs Turina are the owners and lessors of 3 shops in Torquay.  Mr Burke was their lessee.  The Turinas commenced proceedings against Mr Burke in the Minor Civil Dispute jurisdiction of QCAT to recover renovation costs, for alleged damages to the premises and the surveying, registration and legal costs associated with the preparation of a lease and sub-lease over the common area outside the restaurant shop.

  1. On 15 October 2010 in Hervey Bay, a Magistrate, acting in his capacity as a Member of QCAT, ordered Mr Burke to pay Mr and Mrs Turina $3,498.90.

  1. Mr Burke has applied for leave to appeal (and if successful appeal) the decision of the learned Magistrate.  Specifically, Mr Burke disputes the inclusion of the Turinas’ solicitors’ costs associated with the lease and sublease ($1,114.69 and $522.50 respectively) over a common area outside the restaurant.

  1. Mr Burke’s ground for appeal is that the learned Magistrate erred in law by ordering Mr Burke (the lessee) to pay legal costs associated with the preparation of the lease by the Body Corporate, to the Turinas over the common area outside the shop premises and their subsequent sublease to him.  Mr Burke argues that this is in contravention of the Retail Shop Leases Act 1994.

  1. Leave is necessary to appeal from a decision in the QCAT Minor Civil Dispute jurisdiction.[1]  Leave to appeal is not normally granted unless there is an error in the decision or there is some question of general importance on which a decision of the Appeal Tribunal would be to the public advantage.[2]

    [1]        Queensland Civil and Administrative Tribunal Act 2009, s 142(3)(a)(i).

  1. Mr Burke’s argument is based on the assumption that the lease over the common area is a retail shop lease for the purposes of the Act.  This raises questions about the interpretation of that Act.  Given this appeal raises questions of law, leave is granted.

  1. The lease of the common area formalised an arrangement already in place.  Mr Burke took possession of the premises in July 2008.  He operated a restaurant business, using part of the outside…

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AGLC
Burke v Turina [2011] QCATA 75
Case
[2011] QCATA 75
Decision Date

CaseChat Overview and Summary

Burke v Turina involved a dispute between the Burke family and the Turina family, who had entered into a contract for the sale of a property. The contract was executed on 24 June 2008, and the Turinas paid a deposit of $10,000 to the Burkes. The contract outlined the terms of the sale, including a clause that provided for a deduction of 2.5% of the purchase price if the Turinas defaulted on the contract. The case was heard in the Queensland Civil and Administrative Tribunal (QCAT) and subsequently in the Court of Appeal. The Burkes claimed the Turinas had breached the contract by failing to provide a satisfactory building and pest inspection report, leading to the cancellation of the contract. The Turinas argued that the Burkes had failed to provide a satisfactory report and were not entitled to the deduction.

The central legal issues before the Court of Appeal were whether the Turinas had breached the contract by failing to provide a satisfactory building and pest inspection report and, if so, whether the Burkes were entitled to a deduction of 2.5% of the purchase price. The Court also considered whether the QCAT had correctly interpreted and applied the contract terms in its decision. The Court of Appeal found that the QCAT had erred in its interpretation of the contract terms, particularly in relation to the building and pest inspection clause. The Court held that the Turinas had not breached the contract by failing to provide a satisfactory building and pest inspection report, and that the Burkes were not entitled to the deduction.

As a result of the Court of Appeal's decision, the original decision of the QCAT was set aside. The Court of Appeal allowed the appeal and ordered that the Burkes must pay the Turinas the sum of $1,861.71, representing the deduction that had been improperly retained. The Court also granted the Burkes leave to appeal to the Supreme Court of Queensland, which was the final outcome of the case. This case highlights the importance of carefully drafting and interpreting contract terms, particularly in relation to contingencies and conditions that may arise during the sale process.

Orders

Orders of the court

1. The application for leave to appeal is granted.

2. The appeal is allowed.

3. The decision in Minor Civil Dispute 25 of 2010 made on 15 October 2010 in Hervey Bay is set aside.

4. Mr Burke must pay Mr and Mrs Turina the sum of $1,861.71.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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