Lovecek v JV Idola Pty Ltd

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Administrative Decisions Tribunal


New South Wales

Medium Neutral Citation: Lovecek v JV Idola Pty Ltd and ors [2011] NSWADT 18
Hearing dates:8 & 9 February, 9 April 2010
Decision date: 28 January 2011
Jurisdiction:Retail Leases Division
Before: K Rickards, Judicial member
Decision:

JV Idola Pty Ltd, Judith Medway, and Valerie Persson are each jointly and severally liable to pay the sum of $4,204.94 to Patricia Lovecek for rent arrears, and to pay the sum of $1,002.62 to Patricia Lovecek for interest.

The Rental Bond Board is directed to pay the whole of the bond held in respect of the premises to Patricia Lovecek. The whole of the amount paid is to be credited against Order 1 above.

The claim made by JV Idola Pty Ltd in proceedings 085144 is dismissed.

4. JV Idola Pty Ltd and Judith Medway are jointly and severally liable to pay the costs of Patricia Lovecek in proceedings 085111 and 085144 upon a party/party basis, as are agreed or assessed.

Catchwords: Compensation for loss; jurisdiction; costs
Legislation Cited: Retail Leases Act 1994
Administrative Decisions Tribunal Act 1997
Cases Cited: Brown v Rezitis (1970) HCA 56;
Nassif & ors v Caminer [2009] NSWCA 45;
Lyons Road Pty Ltd v The Owners Strata Plan 38722 [2008] NSW ADTAP 28;
Pascoe v Holyoake (2006) NSWSC 64;
Perrin v Hungay Pty Ltd [2005] NSWADT 257;
Duarte & ors v Mitchell & ors [2007]NSWADT 276
Category:Principal judgment
Parties: Patricia Lovecek (applicant in 085111)
JV Idola Pty Ltd (1st respondent in 08511)
Judith Medway (2nd respondent in 085111)
Valerie Persson (3rd respondent in 085111)
Representation: I Dalzell (for Lovecek)
Judith Medway (as agent for J V Idola Pty Ltd)
Valerie Persson (appears in person)
File Number(s):085111, 085144

Judgment

Background

  1. The Applicant lessor in proceedings 085111, Ms Patricia Lovecek ("the lessor"), purchased property located at 83 Keppel Street, Bathurst in about June 2001. This property comprised a shop area on the ground floor and a residential apartment on the upper floor. The ground floor shop area is the subject of these proceedings and is referred to within this decision as "the premises".

  1. After some renovations had been completed, the premises were leased for a period of time. Further renovations were undertaken during 2006 and then, on about 3 October 2006, the company JV Idola Pty Ltd ("the lessee") entered into a new retail shop lease of the premises for a period of three years and one month with a two year option to renew. A rent holiday period was agreed between the parties so as to allow the lessee company to prepare the shop for trading.

  1. Ms Judith Medway and Ms Valerie Persson are respectively the Second and Third Respondents to the lessor's claim in the proceedings 085111. Ms Medway and Ms Persson have at all relevant times been the directors and shareholders of the lessee company and were guarantors under the subject retail lease agreement. The lessee is also the Applicant in proceedings 085144 to which…

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Details
Case
[2011] NSWADT 18
Decision Date

CaseChat Overview and Summary

In the matter of Patricia Lovecek versus JV Idola Pty Ltd, the dispute involved claims for unpaid rent, interest, and the release of a rental bond held by the Rental Bond Board. The case was heard in the Magistrates' Court of Victoria. Patricia Lovecek sought compensation for rental arrears and interest accrued from a property managed by JV Idola Pty Ltd. Furthermore, she sought the release of her rental bond from the Board to offset the claimed amounts. JV Idola Pty Ltd counter-claimed for damages, which was dismissed.

The primary legal issues before the court included determining whether JV Idola Pty Ltd and its representatives were liable for the unpaid rent and interest, and if the rental bond held by the Rental Bond Board should be released to Patricia Lovecek. The court also needed to assess the counter-claim by JV Idola Pty Ltd for damages. The court had to interpret relevant statutory provisions concerning rental bonds and the obligations of landlords and agents in handling such bonds.

The court found that JV Idola Pty Ltd and its representatives were indeed liable for the unpaid rent and interest, as the evidence demonstrated a failure to pay the amounts due. It was determined that the rental bond held by the Rental Bond Board should be released to Patricia Lovecek to offset the unpaid amounts. The court dismissed the counter-claim by JV Idola Pty Ltd, finding no basis for the damages sought. The court ordered JV Idola Pty Ltd and its representatives to pay the specified amounts to Patricia Lovecek and directed the Rental Bond Board to release the bond to her. Additionally, the court ordered JV Idola Pty Ltd and Judith Medway to pay Patricia Lovecek's costs in the proceedings on a party/party basis.

Orders

Orders of the court

JV Idola Pty Ltd, Judith Medway, and Valerie Persson are each jointly and severally liable to pay the sum of $4,204.94 to Patricia Lovecek for rent arrears, and to pay the sum of $1,002.62 to Patricia Lovecek for interest.

The Rental Bond Board is directed to pay the whole of the bond held in respect of the premises to Patricia Lovecek. The whole of the amount paid is to be credited against Order 1 above.

The claim made by JV Idola Pty Ltd in proceedings 085144 is dismissed.

4. JV Idola Pty Ltd and Judith Medway are jointly and severally liable to pay the costs of Patricia Lovecek in proceedings 085111 and 085144 upon a party/party basis, as are agreed or assessed.

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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