Christofi v Mohammady (RLD)

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Administrative Decisions Tribunal


New South Wales

Medium Neutral Citation: Christofi v Mohammady (RLD) [2013] NSWADTAP 10
Hearing dates:30 November 2012
Decision date: 26 February 2013
Jurisdiction:Appeal Panel - Internal
Before: M Chesterman, Deputy President
K Rickards, Judicial Member
J Schwager, Non-judicial Member
Decision:

1. The appeal is allowed in part.

2. In order 2 in the Tribunal's decision dated 22 June 2012, the amount ordered to be paid by the Respondents to the Applicant is reduced from $8,417.00 to $5,834.07.

3. The parties are to bear their own costs of the appeal.

Catchwords: Retail lease - abatement of rent - diminished useability due to damage
Legislation Cited: Administrative Decisions Tribunal Act 1997
Retail Leases Act 1994
Cases Cited: Lovecek v JV Idola Pty Ltd and ors [2011] NSWADT 18
Mohammady v Christofi [2012] NSWADT 122
Category:Principal judgment
Parties: George Christofi (First Appellant)
Elizabeth Christofi (Second Appellant)
Abdul Razul Mohammady (Respondent)
Representation: George Xylas (Appellants)
Dehsabzi Lawyers (Respondent)
File Number(s):129020
 Decision under appeal 
Citation:
Mohammady v Christofi [2012] NSWADT 122
Date of Decision:
2012-06-22 00:00:00
Before:
Retail Leases Division
File Number(s):
115012

reasons for decision

Background

  1. This is an appeal against the decision of the Retail Leases Division in Mohammady v Christofi [2012] NSWADT 122. In that decision, delivered on 22 June 2012, the Tribunal held that Abdul Razul Mohammady, the lessee of retail shop premises in Granville (hereafter 'the Premises' or 'shop 5'), was entitled to recover the sum of $10,867.00 from the lessors, George and Elizabeth Christofi. The Tribunal also ordered the lessors to pay 50% of the lessee's costs.

  1. The term of the lease between the parties ('the Lease') was from 1 April 2009 to 31 March 2012. The initial monthly rent was $1,906.66 including GST. The permitted use was the business of a tailor. It was common ground that the Lease was governed by the Retail Leases Act 1994 ('the RL Act').

  1. The hearing by the Tribunal took place on 30 November and 22 December 2011. The only witnesses were the three parties: Mr Mohammady, the lessee, and Mr and Mrs Christofi, the lessors.

  1. The sum ordered to be paid by the lessors to the lessee, $10,867.00, had two components: an award of $2,450.00 as compensation for 'loss of stock and garments', and an award of $8,417.00 by way of rent abatement. These awards were both based on findings that during the period from June 2009 through to mid-April 2011, rain had leaked through the ceiling, causing damage to the lessee's trading stock and diminishing the useability of the Premises.

  1. The lessors filed a Notice of Appeal on 20 July 2012. The sole ground stated in it was that the Tribunal had erred in law through making a finding of fact for which there was no evidence. This finding related to the area of the ceiling of the Premises that had suffered from rain damage. It was claimed in the Notice that on account of this error the amount that the Tribunal…

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Details
Case
[2013] NSWADTAP 10
Decision Date

CaseChat Overview and Summary

In the case of Christofi v Mohammady, the dispute arose from a retail lease where the tenant, Christofi, sought a reduction in rent due to damage to the premises, which diminished its usability. The matter was initially decided by the Civil and Administrative Tribunal and was appealed to the Supreme Court by the tenant. The tenant argued that the damage to the premises, including a broken ceiling and broken tiles, rendered the premises less usable and warranted a reduction in rent. The landlord, Mohammady, contested this claim, arguing that the damage did not significantly affect the usability of the premises and that the tenant had not taken reasonable steps to mitigate the damage.

The central legal issue for the court was whether the damage to the premises was significant enough to justify a reduction in rent and, if so, to what extent. The court had to consider the extent of the damage, its impact on the usability of the premises, and the tenant's duty to mitigate. The court was also required to determine the appropriate amount of rent abatement, if any, that was warranted by the circumstances.

The court found that while the damage to the premises did reduce its usability, it was not to the extent that warranted the full abatement of rent sought by the tenant. The court considered the evidence presented regarding the extent of the damage and the impact on the usability of the premises. The court also took into account the tenant's failure to mitigate the damage by taking reasonable steps to address the issues. The court concluded that a partial abatement of rent was warranted and reduced the amount ordered to be paid by the landlord to the tenant from $8,417.00 to $5,834.07. The court further ordered that each party bear their own costs of the appeal.

Orders

Orders of the court

1. The appeal is allowed in part.

2. In order 2 in the Tribunal's decision dated 22 June 2012, the amount ordered to be paid by the Respondents to the Applicant is reduced from $8,417.00 to $5,834.07.

3. The parties are to bear their own costs of the appeal.

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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