Emaaas P/L v Mobil Oil Australia Ltd

In the matter of Emaaas P/L versus Mobil Oil Australia Ltd, the court was asked to determine the validity of a termination of a lease for premises used as a service station. The appellant, Emaaas P/L, challenged the termination by the respondent, Mobil Oil Australia Ltd, which they claimed was based on roadworks that allegedly altered streets providing access to the premises. The case was heard in the Supreme Court of Australia.

The central legal issues before the court were whether the purported termination of the lease was valid and whether the roadworks had resulted in a significant alteration of the streets giving access to or egress from the premises. Specifically, the court had to interpret the lease clause that allowed for termination if streets were significantly altered, and whether economic detriment alone was sufficient to trigger this right to terminate.

The court found that the clause permitting termination upon significant alteration of streets applied to all streets providing access to the premises, not just those with driveways. It also determined that a significant alteration meant a substantial change that would result in significant economic disadvantage to the lessee. The court held that economic detriment alone was not enough to trigger the termination clause unless there was a significant physical alteration of the streets. Consequently, the appeal was allowed, the Supreme Court's judgment was set aside, and the matter was returned for a further hearing. The court ordered that the termination by Mobil Oil Australia Ltd was valid only if the roadworks caused significant economic disadvantage to Emaaas P/L by altering Manly Road in the immediate vicinity of the site. Mobil Oil Australia Ltd was also ordered to pay two-thirds of the appellant's costs of the appeal.