Hammond Villages Pty Ltd v Residents of Hammond Village

The respondents, residents of Hammond Village, sought a review of the site rent they paid to Hammond Villages Pty Ltd. The dispute arose from the site agreements between the parties which provided for a review of site rent in accordance with a prescribed formula. The residents argued that the site rent should be reviewed on the basis of market rent, rather than the prescribed formula. The matter was heard in the Supreme Court of New South Wales.

The court was required to determine the correct method of reviewing site rent under the site agreements. The central issue was whether the site agreements permitted a review based on market rent, or whether the prescribed formula was the only permissible method. The court also had to consider whether the site agreements were in fact leases, which would have implications for the review of site rent.

The court found that the site agreements were indeed leases, and that the prescribed formula for reviewing site rent was the only permissible method. The court held that the parties had agreed to a fixed method of reviewing site rent, and that this method was not open to challenge. The court further held that the residents were bound by the terms of the site agreements, and could not unilaterally change the method of reviewing site rent.

The court ordered that the site rent of the respondents' sites be increased in accordance with the prescribed formula. The specific increases in site rent were set out in the orders of the court. The residents were not permitted to challenge the method of reviewing site rent, and were bound by the terms of the site agreements. The court's decision was based on a strict interpretation of the terms of the site agreements, and the court held that the residents were not entitled to a review of site rent on the basis of market rent.