Liberty Estate Agents Pty Ltd v Osman

Liberty Estate Agents Pty Ltd brought an action against Brendan Osman and Sarah Walls for damages to a carpet during their tenancy. The dispute was heard and determined by the Civil and Administrative Tribunal of New South Wales, and the tenants appealed to the Supreme Court of New South Wales. The central legal issues were whether the tribunal had sufficient evidence to conclude that the carpet's condition was unrelated to the tenancy, and if the lessors were entitled to the full cost of replacing the carpet. The Court of Appeal considered the evidence presented and the tribunal's findings, ultimately determining that the tribunal erred in its assessment of the evidence and the weight it afforded to the expert evidence.

The Court of Appeal found that the tribunal had overlooked key evidence regarding the carpet's condition and its deterioration during the tenancy. They held that the tribunal should have afforded more weight to the evidence presented by the lessors and should have considered the age and condition of the carpet at the start and end of the tenancy. The tribunal's conclusion that there was no evidence linking the carpet's condition with the tenancy was deemed to be an error. The Court of Appeal allowed the appeal and set aside the tribunal's decision, ruling that the lessors were entitled to recover the full cost of replacing the carpet. They granted the tenants leave to appeal to the Supreme Court of New South Wales and ordered that the tenants pay the lessors the amount of $1,019.92 within 28 days of the date of the judgment.