Heysham Properties Pty Ltd v Action Motor Group Pty Ltd

Heysham Properties Pty Ltd (the plaintiff) brought proceedings against Action Motor Group Pty Ltd and others (the defendants) in the Supreme Court of New South Wales, Court of Appeal. The dispute concerned the plaintiff's claim for damages for breach of contract and negligence arising from the defendants' alleged failure to properly maintain and repair a commercial property leased by the plaintiff.

The central legal issues before the Court of Appeal were whether the defendants had breached their contractual obligations to maintain the property in good repair and whether they had acted negligently in carrying out those maintenance and repair duties. The court was also required to consider the extent of the plaintiff's loss and whether it was recoverable in contract and/or tort.

The Court of Appeal, in its reasoning, examined the terms of the lease agreement and the common law duties of care owed by a landlord to a tenant. The court applied principles of contract law to determine the scope of the defendants' obligations under the lease and principles of negligence to assess whether their conduct fell below the standard of reasonable care. The court found that the defendants had breached their contractual obligations and had also been negligent in their maintenance of the property, leading to the plaintiff's losses.

The Court of Appeal allowed the plaintiff's appeal in part, varying the orders of the primary judge. The court ordered that the defendants pay damages to the plaintiff, with the quantum of damages to be assessed.