Cihan v City Tobacconist Pty Ltd and Gebara

Case

[2015] NSWCATCD 148

16 December 2015


Details
AGLC Case Decision Date
Cihan v City Tobacconist Pty Ltd and Gebara [2015] NSWCATCD 148 [2015] NSWCATCD 148 16 December 2015

CaseChat Overview and Summary

Cihan v City Tobacconist Pty Ltd and Gebara was a dispute between the applicant, who was the landlord of a commercial property, and the respondents, who were the lessees. The dispute arose when the respondents surrendered the lease before the end of its term, and the applicant claimed damages for the early surrender. The case was heard by the Civil and Administrative Tribunal of New South Wales.

The legal issues in the case included whether the applicant was estopped from claiming damages for the early surrender, whether the applicant had mitigated its losses by finding new tenants, and whether the terms of the Law Society Lease applied to the case. The respondents argued that the applicant was estopped from claiming damages because it had encouraged the respondents to surrender the lease, and that the applicant had not mitigated its losses by finding new tenants. The applicant argued that it had not encouraged the respondents to surrender the lease and that it had taken reasonable steps to mitigate its losses.

The Tribunal found that the applicant was not estopped from claiming damages for the early surrender because it had not encouraged the respondents to surrender the lease. The Tribunal also found that the applicant had mitigated its losses by finding new tenants, and that the terms of the Law Society Lease applied to the case. The Tribunal ordered the respondents to pay the applicant damages for the early surrender, as well as interest and costs.

The Tribunal ordered the respondents to pay the applicant the sum of $24,549.40 within 14 days of the publication of these Reasons. The Tribunal also ordered the respondents to pay interest from 1 February 2014 at the rate of 15% per annum pursuant to clause 5.1.5 of the Lease, totalling $5,775.80 and accruing at the daily rate of $10.09 from 25 August 2015. The question of costs was reserved, and either party could make submissions on costs within 28 days of the publication of these Reasons.
Details

Areas of Law

  • Property Law

Legal Concepts

  • Estoppel

  • Compensatory Damages

  • Mitigation of Loss

  • Specific Performance