Hosanna Excelsis One Universal Church Incorporated v Pastina Pty Ltd

Hosanna Excelsis One Universal Church Incorporated (Hosanna) appealed to the Full Court of the Supreme Court of South Australia against a judgment concerning a lease dispute with Pastina Pty Ltd (Pastina). The core of the dispute revolved around the legal characterisation of Hosanna's continued occupation of the leased premises after the expiry of the original lease term, and the implications of this holding over under the *Retail and Commercial Leases Act 1995* (SA).

The legal issues before the Full Court were whether Hosanna's holding over constituted a new lease for the purposes of section 20B of the *Retail and Commercial Leases Act 1995*, which would necessitate a minimum term of five years, and alternatively, if the application of section 20B(3)(d) should be assessed at the commencement of the holding over period or upon the expiry of a subsequent six-month period. The original lease, which commenced on 1 May 2010 for a term of five years, included a right of renewal and a clause (4.8) stipulating that holding over would result in a monthly tenancy on the same terms as the original lease, subject to certain variations.

The Full Court allowed the appeal, setting aside the primary judge's judgment and orders. While the Court did not definitively rule on the precise construction of section 20B in relation to the holding over, it indicated that the primary judge's approach to assessing the application of section 20B(3)(d) was likely erroneous. The Court determined that further consideration was required regarding the quantum of the net judgment to be entered in favour of Hosanna and the appropriate orders for costs.