Ray White Victoria Point v Simons

In the case of Ray White Victoria Point v Simons, the dispute involved a claim by the lessor for compensation for loss of rent after the tenants, Vickie and Gary Simons, terminated their lease early. The case was heard in the Magistrates’ Court of Victoria, with the lessor, Ray White Victoria Point, seeking to recover losses due to the early termination. The legal issues at hand were whether the lessor had taken all reasonable steps to mitigate their losses and the interpretation of the phrase "all reasonable steps." Furthermore, the court needed to determine whether the onus to demonstrate a failure to mitigate rested with the tenant or was a neutral obligation.

The court addressed the issue of reasonable steps to mitigate losses by examining the actions taken by the lessor to relet the premises. The lessor argued they had made all reasonable efforts to relet the property at the same rent as before. However, the court found that the lessor had not taken all reasonable steps to mitigate the loss. The court held that the onus to show a failure to mitigate is a neutral obligation, not specifically on the tenant. The court also considered the lessor's efforts to advertise the property and their decision not to reduce the rent.

As a result, the court granted leave to appeal the earlier decision, set aside the previous ruling, and ordered a rehearing. The appeal was allowed, and the decision from 22 March 2018 was set aside. On the rehearing, the court ordered Vickie and Gary Simons to pay Ray White Victoria Point $3,033.26. Additionally, the Residential Tenancies Authority was directed to release $1,960 of the rental bond to the lessor in partial satisfaction of this order.