Kavia Holdings Pty Ltd v Bevillesta Pty Ltd

Case

[2006] NSWSC 633

27 June 2006


Details
AGLC Case Decision Date
Kavia Holdings Pty Ltd v Bevillesta Pty Ltd [2006] NSWSC 633 [2006] NSWSC 633 27 June 2006

CaseChat Overview and Summary

Kavia Holdings Pty Ltd, the owner of a commercial property, initiated proceedings against Bevillesta Pty Ltd, the tenant of a restaurant within the property, to determine whether the lease of the restaurant premises included an implied right to store garbage on the common property. The matter was heard and determined in the Supreme Court of Victoria. The central issue before the court was whether the lease of the restaurant premises carried an implied right to store garbage on the common property of the property, and if so, whether this right could be enforced against the property owner. The court was required to determine whether the rule in Wheeldon v Burrows applied to the circumstances of this case, which allows for the implication of rights in favour of a tenant where the right is necessary for the reasonable enjoyment of the leased premises.

The court found that the lease did not expressly address the issue of garbage storage on the common property, and therefore, it was necessary to consider whether an ancillary right could be implied in favour of the tenant. The court noted that the rule in Wheeldon v Burrows applies where three conditions are met: the right must be necessary for the reasonable enjoyment of the leased premises, it must be continuous and apparent, and it must be capable of being expressly granted. The court found that all three conditions were satisfied in this case, as the right to store garbage on the common property was necessary for the reasonable enjoyment of the restaurant premises, it was continuous and apparent, and it was capable of being expressly granted. The court further found that the right to store garbage on the common property was necessary for the operation of the restaurant and that it was reasonable for the tenant to expect this right to be included in the lease.

The court held that the lease of the restaurant premises carried an implied right to store garbage on the common property, and that this right could be enforced against the property owner. The court found that the rule in Wheeldon v Burrows applied to the circumstances of this case, and that the implied right was necessary for the reasonable enjoyment of the leased premises. The court further found that the property owner was required to permit the tenant to store garbage on the common property, and that the tenant was entitled to damages for any loss or expense incurred as a result of the property owner's failure to permit this use. The court ordered the property owner to permit the tenant to store garbage on the common property and to pay damages to the tenant in the amount of $20,000.
Details

Areas of Law

  • Property Law

Legal Concepts

  • Easements & Covenants

  • Implied Terms

  • Adverse Possession

Actions
Download as PDF Download as Word Document


Cases Citing This Decision

8

Hinkley v Star City Pty Ltd [2010] NSWSC 1389
Hinkley v Star City Pty Ltd [2010] NSWSC 1389
Cases Cited

5

Statutory Material Cited

1

Hart v Macdonald [1910] HCA 13