SUPREME COURT OF VICTORIA
COURT OF APPEAL
| S APCI 2013 0018 | |
| COOMA CLOTHING PTY LTD (ACN 136 547 192) & ORS | Applicants |
| v | |
| CREATE INVEST DEVELOP PTY LTD (ACN 142 532 232) | Respondent |
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| JUDGES | NETTLE and NEAVE JJA |
| WHERE HELD | MELBOURNE |
| DATE OF HEARING | 26 April, 3 May 2013 |
| DATE OF JUDGMENT | 10 May 2013 |
| MEDIUM NEUTRAL CITATION | [2013] VSCA 106 |
| JUDGMENT APPEALED FROM | VCAT Reference No R65/2012, Judge Macnamara, Vice President dated 1 November 2012 |
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LANDLORD AND TENANT – Retail premises lease – Renewal – Executory contract between tenant under retail premises lease and purchaser of reversion under uncompleted contract of sale of reversion for new lease of premises to commence upon expiration of existing retail premises lease – Whether executory contract a ‘renewal’ of lease within meaning of Retail Leases Act 2003 (Vic) – Whether executory contract valid and enforceable though not a ‘renewal’ – Assignment – Purported assignment by tenant to new tenant (‘assignee’) of both remainder of term of lease and executory contract for new lease – Whether assignment effective to convey both benefit and burden of executory contract for new lease – Later completion of contract of sale of reversion – Whether purchaser of reversion entitled to enforce executory contract for new lease as against assignee – Guarantee – Construction of guarantee – Whether guarantee of assignee’s obligations extending to assignee’s obligations under executory contract for new lease – Whether guarantee of obligations under executory contract for new lease a covenant running with land – Chan v Cresdon Pty Ltd (1989) 168 CLR 242, distinguished; P A Swift Investments v Combined English Stores Group Plc [1989] AC 632, Gumland Property Holdings Pty Ltd v Duffy Bros Fruit Market (Campbelltown) Pty Ltd (2008) 234 CLR 237, applied – Retail Leases Act 2003 (Vic), ss 3, 8, 9(b), 21(4); Property Law Act 1958 (Vic), ss 140, 141, 142 and 154; Transfer of Land Act 1958 (Vic), ss 40, 42(2)(e) and 66.
APPEAL – Practice and Procedure – Application for leave to appeal out of time from decision of Victorian and Administrative Tribunal (‘VCAT’) – Need to show good reason for delay – Retail premises lease – Application for leave to appeal granted but appeal dismissed – Picken v President etc of the Shire of Alexander (1890) 16 VLR 309, 311; In the Marriage of J F and J E McAleese (1977) 3 Fam LR 11604, referred to – Victorian Civil and Administrative Tribunal Act 1998 (Vic), s 148(2).
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| Appearances: | Counsel | Solicitors |
| For the Applicants | Mr J D Atkins with Mr V C Nath | Wilbert Mapombere |
| For the Respondent | Mr M T Settle | HDL Legal & Consulting |
NETTLE JA
NEAVE JA:
This is an application for an extension of time in which to apply pursuant to s 148(1) of the Victorian Civil and Administrative Tribunal Act 1998 for leave to appeal against orders of a Vice President of the Tribunal and for a stay of his Honour’s orders pending the hearing and…
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- Case
- [2013] VSCA 106
- Decision Date
CaseChat Overview and Summary
The legal issues encompassed the interpretation of the term ‘renewal’ within the Retail Leases Act 2003 (Vic) and whether the executory contract could be deemed enforceable despite not meeting the statutory definition. Furthermore, the validity of the assignment of both the lease and the executory contract to the assignee, and the extent of the guarantor’s obligations, were pivotal. The court examined whether the guarantor’s obligations extended to the assignee’s responsibilities under the executory contract and if such obligations were enforceable as a covenant running with the land. Relevant legislation included the Retail Leases Act 2003 (Vic), Property Law Act 1958 (Vic), and Transfer of Land Act 1958 (Vic).
The court found that the executory contract did not constitute a ‘renewal’ under the Retail Leases Act 2003 (Vic), but it was still a valid and enforceable agreement. The assignment of both the lease and the executory contract to the assignee was deemed effective, transferring both the benefit and burden of the executory contract. However, the purchaser of the reversion was entitled to enforce the executory contract against the assignee upon the completion of the contract of sale of the reversion. The court also ruled that the guarantee provided by the assignee did not extend to the assignee’s obligations under the executory contract for the new lease, distinguishing it from the principle in Chan v Cresdon Pty Ltd (1989) 168 CLR 242. The appeal was dismissed due to the lack of a compelling reason for the delay in filing the application for leave to appeal, despite the application being granted under the Victorian Civil and Administrative Tribunal Act 1998 (Vic).
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