Dalco Realty Pty Ltd v Chun

Case [2024] QCATA 123


QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL


CITATION:

Dalco Realty Pty Ltd v Chun  [2024] QCATA 123

PARTIES:

DALCO REALTY PTY LTD

(applicant/appellant)

v

SUNGMIN CHUN

(respondent)

APPLICATION NO/S:

APL 118-23

ORIGINATING APPLICATION NO/S:

Claim 154/22 Bundaberg

MATTER TYPE:

Appeals

DELIVERED ON:

18 November 2024

HEARING DATE:

On the papers

HEARD AT:

Brisbane

DECISION OF:

Judicial Member D J McGill SC

ORDERS:

1.     Application for leave to appeal from the decision of the Tribunal of 24 March 2023 dismissed.

2.     No order as to costs. 

CATCHWORDS:

LANDLORD AND TENANT – RESIDENTIAL TENANCIES LEGISLATION – REGULATION OF RENT INCREASES – Lease agreement for a term – whether valid term for rent increase – whether increased rent payable under agreement to terminate tenancy agreement early – whether tenancy agreement terminated – whether obligation to pay increased rent after termination – former tenant entitled to recover overpaid rent 

Residential Tenancy and Rooming Accommodation Act 2008 (Qld) s 91, s 277

Fogarty v Hughes [2024] QCAT 273
Hiscox v P B G Realty [2019] QCATA 112
Kiriri Cotton Co v Dewani [1960] AC 192
Lobato v Gardian Real Estate Pty Ltd [2021] QCATA 130

APPEARANCES & REPRESENTATION:

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

REASONS FOR DECISION

  1. On 23 November 2022 the respondent filed in the Tribunal an application for a minor civil dispute – residential tenancy dispute, naming as respondent the appellant.[1]  The respondent sought payment of most of the rental bond from the Residential Tenancy Authority (“RTA”), and to recover what was described as wrongly paid increased rent, although the reasons for the claim also sought in effect a declaration that no more money was owing, and compensation for difficulties caused to the respondent, in no defined amount. 

    [1]I shall for convenience identify Dalco Realty Pty Ltd as the appellant, and Sungmin Chun as the respondent. 

  2. On 24 March 2023 the application came on for hearing before a Member in Bundaberg.[2]  At the end of the hearing the Member ordered that the bond be paid, as to $1,360 to the respondent and as to $140 to the appellant, and that the appellant pay the respondent $1,178.76 as overpaid rent, and the filing fee of $130.17.  The Member also said that the respondent was not liable to pay rent for the period after he vacated the property.  The Member gave written reasons for the decision. 

    [2]A Magistrate sitting as a Member of the Tribunal under the Queensland Civil and Administrative Tribunal Act 2009 (Qld) (“the QCAT Act”) s 171(2).

  3. On 20 April 2023 the appellant filed in the Tribunal an application for leave to appeal.  Because the proceeding was a type of minor civil dispute, the appellant requires the leave of the Appeal Tribunal in order to appeal.[3]  Leave is usually only granted where there is a reasonable argument that there is an error which should be corrected and an appeal is necessary to correct a substantial injustice…

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AGLC
Dalco Realty Pty Ltd v Chun [2024] QCATA 123
Case
[2024] QCATA 123
Decision Date

CaseChat Overview and Summary

The case of Dalco Realty Pty Ltd v Chun involves a dispute between a landlord and a tenant over the validity of a rent increase clause in a residential tenancy agreement. The matter was heard in the Supreme Court of Queensland. The primary issue before the court was whether a term in the lease agreement, which allowed for a rent increase after the first year of the lease, was valid. Additionally, the court had to determine if the tenancy agreement was terminated, and if so, whether the tenant was still obligated to pay the increased rent following the termination. The tenant, Chun, also sought to recover the overpaid rent after the termination of the lease.

The court examined the terms of the lease agreement and the relevant residential tenancy legislation. It considered whether the rent increase term was enforceable and whether the agreement was validly terminated. The court found that the rent increase clause was valid and enforceable under the terms of the lease and the applicable legislation. However, the court also determined that the tenancy agreement had been terminated, and that the obligation to pay the increased rent did not survive the termination. Consequently, the court held that the former tenant, Chun, was entitled to recover the overpaid rent.

In dismissing the application for leave to appeal, the court emphasised the importance of adhering to the terms of the lease agreement and the legislative framework governing residential tenancies. The court did not make any order as to costs, reflecting a balanced approach to the resolution of the dispute. This decision serves as a reminder to landlords and tenants of the need to carefully consider the terms of lease agreements and to comply with relevant legislation to avoid potential disputes.

Orders

Orders of the court

1. Application for leave to appeal from the decision of the Tribunal of 24 March 2023 dismissed.

2. No order as to costs.

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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