NSW Land and Housing Corporation v Lea

The case before the court involved a dispute between the NSW Land and Housing Corporation and the tenant, Lea, concerning the termination of a residential tenancy agreement due to the tenant’s illegal use of the premises and the potential for undue hardship in terminating the agreement. The matter was heard in the NSW Civil and Administrative Tribunal.

The primary legal issues the court was required to decide included whether the illegal use of the premises constituted a breach of the tenancy agreement that warranted termination and whether the termination of the tenancy would impose undue hardship on the tenant. The court also needed to consider the balance between enforcing the law and providing a stable housing situation for the tenant.

The court found that the tenant’s use of the premises for an illegal purpose constituted a significant breach of the tenancy agreement. However, the court also acknowledged the potential for undue hardship in terminating the tenancy, given the tenant’s circumstances. After weighing these factors, the court decided to terminate the tenancy agreement in accordance with section 91(1)(a) of the Residential Tenancies Act 2010. The court ordered that the tenancy agreement be terminated immediately, with possession to be handed over on the date of termination. However, recognising the potential hardship, the court suspended the order for possession until 31 March 2021.