CBS Leasing Pty Ltd v Imseis

CBS Leasing Pty Ltd brought an action against Imseis, asserting that the defendants had breached an agreement for lease. The case was heard in the Supreme Court of Queensland. The primary dispute centred around a contractual agreement for the lease of premises, where the defendants were required to undertake certain works as the landlord, with a defined completion date. The plaintiff, CBS Leasing, was to perform works as the tenant upon receiving the premises. The defendants completed the sale of the property but delayed in performing the landlord's works, leading to a claim for liquidated damages by the plaintiff.

The court was required to decide whether the completion date for the landlord's works had been varied by agreement and whether the handover of the premises occurred when the plaintiff was granted access to commence the tenant's works and received the set of keys. Additionally, the court had to determine if the cross-claimants' contention that the cross-defendant falsely represented that a Construction Certificate for the development had been approved was misleading or deceptive conduct under the Australian Consumer Law, and if so, whether the cross-claimants were entitled to damages.

The court found that the handover of the premises occurred when the plaintiff was granted access to commence the tenant's works and received the set of keys, even though the landlord's works had not been practically completed by the defined date. Consequently, the liquidated damages were calculated from the date of handover. Regarding the misleading conduct under the Australian Consumer Law, the court held that the cross-defendant's representation was misleading; however, since the cross-claimants did not prove that had the representation not occurred, they would have taken a different course and thereby avoided loss, their claim for damages failed.

The court ordered that the defendants pay the plaintiff liquidated damages from the date of handover and dismissed the cross-claimants' claim for damages under the Australian Consumer Law.