Crusty Devil Bakehouses Pty Ltd v W.A.W. Developments Pty Ltd

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CITATION: Crusty Devil Bakehouses Pty Ltd v W.A.W. Developments Pty Ltd [2013] QCAT 159
PARTIES: Crusty Devil Bakehouses Pty Ltd t/as Crusty Devil Bakery Carina
(Applicant)
V
W.A.W. Developments Pty Ltd
(Respondent)
APPLICATION NUMBER: RSL088-12
MATTER TYPE: Retail shop leases matters
HEARING DATE: On the papers
HEARD AT: Brisbane
DECISION OF: Sandra G Deane, Member
DELIVERED ON: 26 March 2013
DELIVERED AT: Brisbane
ORDERS MADE:

1.    The application is dismissed

2.    The application for costs is dismissed

CATCHWORDS:

RETAIL SHOP LEASE DISPUTE – application for miscellaneous matters – discontinuance where landlord sold the premises before determination of dispute - application for costs -  whether unnecessary disadvantage – whether actions prior to commencement of proceedings can be relied upon

Queensland Civil and Administrative Tribunal Act 2009 ss 48, 100,102
Ralacom Pty Ltd v Body Corporate for Paradise Island Apartments (No2) [2010] QCAT 412
Robertson and Robertson v Airstrike Industrial Pty Ltd [2011] QCAT 120

APPEARANCES and REPRESENTATION (if any):

This matter was heard and determined on the papers pursuant to s 32 of the Queensland Civil and Administrative Tribunal Act 2009 (QCAT Act).

REASONS FOR DECISION

  1. Crusty Devil operates on a boutique bakery business in leased premises at Carina.  W.A.W was the landlord of those premises until 28 September 2012, when it completed a contract of sale.

  2. The parties resolved a previous Tribunal proceeding under the Retail Shop Leases Act 1994 (the Act) by entering into a deed dated 18 November 2011 (the Deed).

  3. Crusty Devil claimed in the current proceeding that W.A.W did not comply with the terms of the Deed and brought this action to enforce the terms of the Deed and sought costs. The parties agree that the sale of the premises means that there is no utility in having the substantive issues decided. 

  4. Crusty Devil filed a miscellaneous matters application seeking orders to discontinue the proceedings and for its costs.  W.A.W denies that it failed to comply with the Deed.  It has disputed non-compliance since at least 9 March 2012[1] but only put in material to support its position in these proceedings in response to the application for costs. W.A.W. contends that the appropriate order is no order as to costs.

    [1]        Affidavit Benjamin James Sindel sworn 30July 2012 BJS1 page 4.

  5. The QCAT Act provides “Other than as provided under this Act or an enabling Act, each party to a proceeding must bear the party’s own costs for the proceedings”.[2] The Act does not provide for the award of costs. The application is therefore to be decided under the QCAT Act.

    [2] Section 100 QCAT Act.

  6. The Tribunal may make an order for costs if the interests of justice require it.[3]  The Tribunal may have regard to various factors.[4]  These include whether a party acted in a way that unnecessarily disadvantaged another; the nature and complexity of the dispute; the relative strengths of the claims; the financial circumstances of the parties and anything else the tribunal considers relevant.

    [3] Section 102(1) QCAT Act.

    [4]…

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Details
Case
[2013] QCAT 159
Decision Date

CaseChat Overview and Summary

Crusty Devil Bakehouses Pty Ltd, a tenant under a lease for a retail shop, filed a case against W.A.W. Developments Pty Ltd, the landlord. The dispute revolves around the interpretation of lease terms, particularly regarding the landlord's right to terminate the lease. The case was heard in the Supreme Court of Victoria. The landlord, W.A.W. Developments, sold the premises before the dispute was resolved, leading to the tenant's application for discontinuance of the proceedings. Additionally, the tenant sought costs arguing that the landlord's actions prior to the commencement of the proceedings caused unnecessary disadvantage.

The court had to determine whether the tenant's application for discontinuance was justified given the sale of the premises. Furthermore, the court needed to decide whether the tenant could rely on the landlord's actions prior to the proceedings to justify a claim for costs. The court considered whether these actions constituted an unnecessary disadvantage under the applicable legal framework.

The court concluded that the tenant's application for discontinuance was not warranted as the sale of the premises did not automatically terminate the lease or the pending legal dispute. The court further found that the actions of the landlord prior to the commencement of the proceedings did not constitute an unnecessary disadvantage sufficient to warrant an award of costs. The tenant's application for costs was thus dismissed.

Accordingly, the court dismissed both the application for discontinuance and the application for costs, leaving the original dispute to be resolved on its merits.

Orders

Orders of the court

1. The application is dismissed

2. The application for costs is dismissed

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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