Dong v West Services Pty Ltd

Case [2010] NSWADT 150



CITATION: Dong v West Services Pty Ltd [2010] NSWADT 150
DIVISION: Retail Leases Division
PARTIES:

APPLICANT
Li Fang Dong

RESPONDENT
West Services Pty Ltd
FILE NUMBER: 105013
HEARING DATES: 9 March 2010
SUBMISSIONS CLOSED: 20 April 2010
 
DATE OF DECISION: 

15 June 2010
BEFORE: Rickards K - Judicial Member
CATCHWORDS: Formation of lease agreement
LEGISLATION CITED: Retail Leases Act 1994
CASES CITED: Helou v Bong Bong Pty Ltd [2006] NSWADT128
Laidlaw v Hillier Hewitt Elsley Pty Ltd [2009] NSWCA 44
Empirnall Holdings Pty Ltd v Machon Paull Partners Pty Ltd (1988) 14 NSWLR 523
Brambles Holdings Ltd v Bathurst City Council (2001) NSWLR 153
ABC v XIVth Commonwealth Games (1988) NSWLR 540
Computer Services Pty Ltd v Digital Equipment Corp (Aust) Pty Ltd (1988) 5 BPR at 11,117
Sagacious Procurement Pty Ltd v Symbion Health Ltd [2008] NSWCA 149
Barrier Wharfs Ltd v W Scott Fell & Co Ltd (1908) CLR 5 647
Carruthers v Whittaker [1975] NZLR 667 CA
Baulkham Hills Private Hospital Pty Ltd v G R Securities Pty Ltd (1986) 40 NSWLR 631
Stephenson v Dwyer [2008] NSWCA 123
Masters v Cameron (1954) 91 CLR 253
Brogden v Metropolitan Railway Co (1876-77) 2 App Cas 666
Agusta Pty Ltd v Perpetual Trustee Company Ltd [2010] NSWCA 110
REPRESENTATION:

APPLICANT
B C Kasep, barrister

RESPONDENT
A J Tudehope SC, barrister
ORDERS: 1.The application is dismissed
2.Unless either party files and serves written submissions as to costs within 14 days, there will be no order as to costs. If either party does file and serve written submissions within 14 days, the other party is to file and serve any written submissions as to costs within a further period of 14 days of service. Unless reasons are advanced for a hearing to be conducted, the matter will be resolved “on the papers” pursuant to section 76 of the Administrative Decisions Tribunal Act 1997.


REASONS FOR DECISION

INTRODUCTION

1 In the original application filed in these proceedings the Applicant seeks a declaration that a valid retail lease agreement exists between her and the Respondent in relation to premises at 15 Rooty Hill Road North, Rooty Hill NSW (“the premises”). The Applicant also seeks damages based upon claimed loss of income caused by the Respondent’s having taken possession of the premises on or about 12 January 2010.

2 Additionally, on 3 February 2010, the Applicant filed an urgent interim application seeking orders restoring possession of the premises to her. This urgent application was heard by Judicial Member Molloy on 11 February 2010, following which orders were made restoring the Applicant to possession of the premises but requiring the Applicant to pay a monthly occupation fee pending determination of the original application.

BACKGROUND

3 On 22 December 2006 the Respondent entered into a retail lease agreement in respect of the premises with Mr Yong Jia Jiang (“Jiang”). The term of the lease was from 1 December 2006 to 30 November 2009. Clause 20 of the agreement permitted Jiang to hold over after the…

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AGLC
Dong v West Services Pty Ltd [2010] NSWADT 150
Case
[2010] NSWADT 150
Decision Date

CaseChat Overview and Summary

The case of Dong v West Services Pty Ltd involved the plaintiff, Dong, seeking to enforce a lease agreement for a property. West Services Pty Ltd, the defendant, disputed the existence of a valid lease agreement. The dispute was heard in the Civil and Administrative Tribunal of New South Wales. The plaintiff claimed that a lease agreement was formed based on correspondence and actions taken, while the defendant argued that no formal agreement had been entered into.

The court was required to determine whether a binding lease agreement existed between the parties. This involved examining the communications and conduct of the parties to ascertain if they demonstrated an intention to create a lease relationship. The court considered the principles of contract formation, including offer, acceptance, intention to create legal relations, and consideration. The focus was on whether there was a mutual agreement between the parties that demonstrated a clear intention to be legally bound.

The court concluded that there was insufficient evidence to establish that a binding lease agreement had been formed. The communications between the parties did not unequivocally demonstrate an intention to create a legal relationship as required for a lease. The court found that while there was a mutual understanding of the terms, it did not reach the level of certainty necessary to form a valid lease agreement. Consequently, the application by the plaintiff was dismissed, and unless written submissions regarding costs were filed within the specified timeframe, no order for costs would be made.

Orders

Orders of the court

1.The application is dismissed

2.Unless either party files and serves written submissions as to costs within 14 days, there will be no order as to costs. If either party does file and serve written submissions within 14 days, the other party is to file and serve any written submissions as to costs within a further period of 14 days of service. Unless reasons are advanced for a hearing to be conducted, the matter will be resolved “on the papers” pursuant to section 76 of the Administrative Decisions Tribunal Act 1997.

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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