Queensland Investment Corporation and Canberra Centre Investments Pty Limited v Kingsley's Chicken Pty Limited

The Queensland Investment Corporation and Canberra Centre Investments Pty Limited (lessors) appealed to the Supreme Court of the Australian Capital Territory against a decision of the Magistrates Court concerning a commercial lease with Kingsley's Chicken Pty Limited (tenant). The dispute arose during negotiations for a lease renewal, specifically concerning the determination of market rent.

The central legal issues before the Supreme Court were whether the Magistrates Court possessed jurisdiction to appoint a valuer to determine the market rent, whether the court was obliged to consider the tenant's application that the appointed valuer had failed to conduct the valuation in accordance with the relevant Act, and whether the Magistrates Court had a discretion to dismiss such an application if the process was deemed futile. Further issues included whether the lessor had engaged in unconscionable conduct, whether the lessor was bound to enter into a renewed lease, and conversely, whether the tenant had engaged in unconscionable conduct or misleading and deceptive conduct causing loss to the lessor.

The Supreme Court held that the Magistrates Court did have jurisdiction to appoint a valuer to determine the market rent. However, the court found that the Magistrates Court was not bound to determine the tenant's application regarding the valuer's alleged failure to conduct the valuation in accordance with the Act, nor did the court have a discretion to dismiss the application on the grounds of futility. The court also determined that neither the lessor nor the tenant had engaged in unconscionable conduct. The lessor's appeal was allowed in part, and the tenant's appeal was dismissed. The court granted leave for parties to make written submissions on further orders and costs.