Rothnere Pty Limited v Magic Markets Pty Limited

Rothnere Pty Limited, the lessor of retail premises, sued Magic Markets Pty Limited, the lessee, for recovery of amounts owed under a registered lease. The dispute came before the Local Court of New South Wales, with the defendants absent at the hearing. The primary legal issues the court had to decide were whether the lessor was entitled to summary judgment under rule 29.7 of the Uniform Civil Procedure Rules 2005 (NSW), given the absence of the defendants, and if so, what costs should be awarded. The court had to consider the application of the rule and the effect of the absence of the defendants on the proceedings, as well as the appropriate costs order in light of an offer of compromise made by the defendants.

The court found that the absence of the defendants justified the granting of summary judgment to the lessor under rule 29.7. The lessor's application was supported by the necessary evidence and affidavits, and there was no indication that the defendants had a real prospect of successfully defending the proceedings. Regarding the costs, the court considered the offer of compromise made by the defendants, which was made after the hearing but before the judgment. The offer was not accepted by the lessor and was deemed insufficient to warrant an order for costs in favour of the defendants. The court ruled that the lessor was entitled to costs on an indemnity basis, reflecting the unsuccessful defence of the proceedings by the absent defendants.

The court ordered that Magic Markets Pty Limited pay Rothnere Pty Limited the sum of $25,865.96, representing the outstanding lease payments, together with interest at the rate of 9% per annum from 20 May 2019 until the date of judgment. Additionally, the court ordered that Magic Markets Pty Limited pay Rothnere Pty Limited's costs of the proceeding on an indemnity basis, with the specific amount to be assessed if not agreed upon by the parties.