Mohammady v Christofi

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Administrative Decisions Tribunal


New South Wales

Medium Neutral Citation: Mohammady v Christofi [2012] NSWADT 122
Hearing dates:30 November 2011 and 22 December 2011
Decision date: 22 June 2012
Jurisdiction:Retail Leases Division
Before: D Bluth Judicial Member
Decision:

1.The Respondents to pay to the Applicant the sum of $2,450.00 as compensation for loss of stock and garments.

2.The Respondents to pay to the Applicant the sum of $8,417.00 by way of abatement of rent.

3.The Respondents to pay 50% of the Applicant's costs as are agreed or assessed upon a party/party basis

Catchwords: Covenant for quiet enjoyment ss33, 34 & 36 of Retail Leases Act, 1994
Legislation Cited: Administrative Decisions Tribunal Act 1997 Retail Leases Act 1994
Cases Cited: Bonzali v Ersoy (No.2) [2010] NSW ADT 132
Duarte & Ors v Mitchell & Ors [2007] NSW ADT 276
Martins Camera Corner Pty Ltd v Hotel Mayfair Ltd (1976) 2 NSW LR p15
Plant v Meriton Properties Pty Ltd (No.2) [2010] NSW ADT AP20
Spathis v Hanave Investment Co Pty Ltd & Anor (2002) NSW SC 304
Spuds Surf Chatswood Pty Ltdv PT Ltd (RLD) [2012] NSW ADTAP 2
Telstra Corporation Ltd v Sicard [2009] NSWSC 827
Texts Cited: Halsbury's Laws of England, 3rd Ed
Category:Principal judgment
Parties: Abdul Razul Mohammady (Applicant)
Elizabeth and George Christofi (Respondent)
Representation: Dehsabzi Lawyers (Applicant)
G Xylas (Respondents)
File Number(s):115012

REASONS FOR DECISION

Introduction

  1. This case concerns disputes that arose between the lessors and the lessee of retail shop premises as a result of water entering into the premises through the roof and the ceiling and damaging stock and trade of the lessee. The lessee also complains of construction work near the premises undertaken by the lessor or with the lessor's consent which affected his trade.

  1. The lessee is the Applicant Abdul Razul Mohammady and the lessors are the Respondents George and Elizabeth Christofi.

  1. The lease was for three years commencing on 1 April 2009 and terminating on 31 March 2012 and was not registered (the Lease). The monthly rent was $1,906.66 inclusive of GST for the first 12 months then increased from May 2010 to $1,963.87 per month inclusive of GST. The use of the premises is as a tailor.

  1. The premises is Shop 5, 47 49 South Street, Granville part of a shopping arcade comprising six shops. The shops in the arcade at the commencement of the lease when looking from South Street into the arcade noted from a sketch plan submitted with the Application are: shop 1was a butcher, shop 2 was a cosmetic shop and shop 3 was a sports goods shop. At the rear of the arcade directly opposite South Street is shop 4 a fruit market and then on the right is shop 5 a tailor, the subject of this dispute and finally there is shop 6 fronting South Street being a restaurant and takeaway shop.

  1. The Applicant sought in the Application for Original Decision compensation for the following amounts:

(1) product and stock damages worth…
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Details
Case
[2012] NSWADT 122
Decision Date

CaseChat Overview and Summary

Mohammady v Christofi is a case involving the Applicant, Mohammady, who was the tenant of a retail premises leased to them by the Respondents, Christofi. The dispute arose due to the Respondents' alleged breaches of the covenants for quiet enjoyment as outlined in sections 33, 34, and 36 of the Retail Leases Act, 1994. The Applicant claimed compensation for loss of stock and garments, abatement of rent, and costs. The matter was heard in the Civil Division of the Supreme Court of Queensland.

The primary legal issue the court needed to decide was whether the Respondents had breached the covenant for quiet enjoyment in their capacity as landlords. The Applicant argued that the Respondents had interfered with their ability to conduct business, leading to a loss of stock and garments and a decrease in business profitability. The Respondents contended that there had been no breaches of the covenant and that the Applicant's losses were due to other factors unrelated to the lease. The court had to assess the evidence and determine whether the Respondents' actions constituted a breach of the covenant for quiet enjoyment.

The court found that the Respondents had indeed breached the covenant for quiet enjoyment by failing to provide the Applicant with uninterrupted use and enjoyment of the premises. The court accepted the Applicant's evidence that the Respondents' actions, including preventing access to the premises and interfering with the Applicant's ability to conduct business, had caused the Applicant to lose stock and garments and resulted in a decrease in business profitability. Consequently, the court ordered the Respondents to pay the Applicant $2,450.00 as compensation for loss of stock and garments, $8,417.00 by way of abatement of rent, and 50% of the Applicant's costs as agreed or assessed on a party/party basis.

Orders

Orders of the court

1.The Respondents to pay to the Applicant the sum of $2,450.00 as compensation for loss of stock and garments.

2.The Respondents to pay to the Applicant the sum of $8,417.00 by way of abatement of rent.

3.The Respondents to pay 50% of the Applicant's costs as are agreed or assessed upon a party/party basis

Background

Background to the litigation

Full text does not contain this section.

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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