Lituma Pty Limited v Jafari

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Appeal Panel - Internal

CITATION: Lituma Pty Limited v Jafari [2005] NSWADTAP 37
PARTIES: APPELLANT
Lituma Pty Limited
RESPONDENT
Zahra Jafari
FILE NUMBER: 059021
HEARING DATES: 20/06/2005
SUBMISSIONS CLOSED: 06/20/2005
DATE OF DECISION:
07/20/2005
DECISION UNDER APPEAL:
Lituma Pty Limited v Jafari [2005] NSWADT 64
BEFORE: Chesterman M - ADCJ (Deputy President); Donald BG - Judicial Member; Weule B - Non Judicial Member
CATCHWORDS: Claim for assignment of rights under a lease/ declaration lessor not entitled to withhold consent to an assignment of rights - statutory interpretation
MATTER FOR DECISION: Principal matter
FILE NUMBER UNDER APPEAL: 055016, 055024
DATE OF DECISION UNDER APPEAL: 03/24/2005
LEGISLATION CITED: Administrative Decisions Tribunal Act 1997
Conveyancing Act 1919
Law of Property Act 1925 (UK)
Retail Leases Act 1994
CASES CITED: Holden v Blaiklock [1974] 2 NSWLR 262
Lituma Pty Ltd v Jafari [2005] NSWADT 64
Plymouth Corporation v Harvey [1971] 1 All ER 623
REPRESENTATION: A Monzo, barrister
F Hicks, barrister
ORDERS: 1. Appeal dismissed; 2. Vary the Tribunal's Order (2), made on 24 March 2005, by deleting 'make the payments set out in cl.1(b) and (c) of the Deed on 26 November 2004 at 2pm' and substituting 'comply with any of the provisions of cl.1(b), (c) or (d) of the Deed'; 3. Vary the Tribunal's Order (4) by deleting 'on 7 April 2005 at 11 a.m.' and substituting 'at a date and time to be fixed by the Registry and communicated to the parties'; 4. Unless an application with supporting submissions is filed in the Tribunal within 28 days, there will be no order on the costs of this appeal. If any such application is filed, the opposing party's submissions must be filed within a further 28 days. In the absence of any request for a hearing, the matter will be determined 'on the papers', under s 76 of the Administrative Decisions Tribunal Act 1997.

Introduction

1 This appeal raises a difficult question of interpretation of a Deed of Release entered into between a lessor of retail shop premises at Willoughby, the initial lessee and an assignee of the lease, who was also the purchaser of the business formerly carried on by the lessee in the premises. The lease was governed by the Retail Leases Act 1994.

2 In these appeal proceedings, the lessor, Lituma Pty Ltd (‘Lituma’), challenged rulings made by the Tribunal, constituted by Ms S Higgins, Judicial Member, by way of determination of preliminary issues arising in two applications. These were (a) an application that Lituma had brought against the assignee, Mrs Zahra Jafari (file 055024) and (b) an application brought by Mrs Jafari against Lituma (file 055016). The Tribunal’s decision was delivered on 24 March 2005 (Lituma Pty Ltd v Jafari [2005] NSWADT 64). Its rulings were in favour of Mrs Jafari.

3 Before describing these rulings, we must summarise the events leading up to the execution of the Deed of Release (‘the Deed’) on 26 November 2004 and the instigation of the present proceedings. These events…

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Details
Case
[2005] NSWADTAP 37
Decision Date

CaseChat Overview and Summary

Lituma Pty Limited was the plaintiff and Jafari the defendant in a dispute concerning the assignment of rights under a lease. The matter was heard in the New South Wales Court of Appeal. The plaintiff sought to assign its rights under a lease to a third party, which the defendant, as the lessor, refused to consent to. The plaintiff appealed against a decision of the Administrative Decisions Tribunal, which had determined that the lessor was entitled to withhold its consent to the assignment.

The primary legal issue before the court was whether the lessor could lawfully withhold its consent to the assignment of the lease. The court needed to interpret the relevant statutory provisions, specifically the Retail Leases Act 1994, to determine the rights and obligations of the parties. The court also had to consider whether the Tribunal's orders were appropriate in light of the statutory framework.

The court found that the statutory provisions did not support the Tribunal's conclusion that the lessor could withhold its consent to the assignment. The court held that the statutory scheme provided for the assignment of rights under a lease without the need for the lessor's consent. Consequently, the court dismissed the appeal and varied the Tribunal's orders to reflect the correct interpretation of the relevant statutory provisions. The court also made orders regarding the costs of the appeal.

Orders

Orders of the court

1. Appeal dismissed; 2. Vary the Tribunal's Order (2), made on 24 March 2005, by deleting 'make the payments set out in cl.1(b) and (c) of the Deed on 26 November 2004 at 2pm' and substituting 'comply with any of the provisions of cl.1(b), (c) or (d) of the Deed'; 3. Vary the Tribunal's Order (4) by deleting 'on 7 April 2005 at 11 a.m.' and substituting 'at a date and time to be fixed by the Registry and communicated to the parties'; 4. Unless an application with supporting submissions is filed in the Tribunal within 28 days, there will be no order on the costs of this appeal. If any such application is filed, the opposing party's submissions must be filed within a further 28 days. In the absence of any request for a hearing, the matter will be determined 'on the papers', under s 76 of the Administrative Decisions Tribunal Act 1997.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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