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 MemberDecision: 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 1994Cases Cited: Lovecek v JV Idola Pty Ltd and ors [2011] NSWADT 18
Mohammady v Christofi [2012] NSWADT 122Category: 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
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.
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').
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.
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.
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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- Case
- [2013] NSWADTAP 10
- Decision Date
CaseChat Overview and Summary
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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