Rudd v Mareeba Shire Council

Rudd applied to the Supreme Court of Queensland for relief from forfeiture of his lease of an aircraft hangar from Mareeba Shire Council. The Council opposed the application, asserting that Rudd had breached the lease by using the premises to conduct maintenance and other works to stored goods and for residential purposes. Rudd argued that the lease clause permitting "use of an aircraft storage hanger for private, non-commercial use" does not confine the purpose of use solely to the storage of aircraft, and that maintenance and repair work are secondary purposes of aircraft storage. He also argued that the correct interpretation of the clause allows for ordinary or customary uses of an aircraft hangar, such as storage of aircraft, maintenance and repair of aircraft, and ancillary uses, and that he was not using the premises for residential purposes.

The court held that the lease clause permitting use of the premises for private, non-commercial use does not confine the purpose of use solely to the storage of aircraft, and that maintenance and repair work are secondary purposes of aircraft storage. The court also held that the correct interpretation of the clause allows for ordinary or customary uses of an aircraft hangar, such as storage of aircraft, maintenance and repair of aircraft, and ancillary uses. The court further held that Rudd was not using the premises for residential purposes. The court found that the Council was not entitled to forfeit Rudd's lease, and ordered that the Council forthwith restore possession of the leased premises to Rudd and pay his costs.