Skiwing Pty Ltd v Trust Company of Australia Ltd

Skiwing Pty Ltd, the lessee, brought an action against Trust Company of Australia Ltd, the lessor, regarding the calculation of outgoings under their lease agreement. The dispute was heard and determined in the Supreme Court of New South Wales. The central issue was the calculation and reimbursement of contributions to outgoings and the promotional fund by the Lessor to the Lessee for the financial years 2000 to 2005. The Lessee argued that the Lessor had incorrectly calculated their share of the outgoings and failed to reimburse them appropriately.

The court examined the terms of the lease to determine the proper calculation of the Lessee's contribution to outgoings. The court held that the Lessor was required to prepare a Schedule of Lessee’s Contribution to Outgoings, limited to specific items such as municipal rates, water rates, land tax, insurances, toilet requisites, and waste removal. The Lessee's share of these outgoings was to be calculated based on the provisions of the Lease and the lettable retail area of the Centre. The court further held that if the Lessee had overpaid, they were to be reimbursed. Conversely, if there was a shortfall, the Lessor was required to issue a notice to the Lessee for the amount owed.

In its judgment, the court ordered the Lessor to prepare the Schedule of Lessee’s Contribution to Outgoings and to either reimburse the Lessee for any overpayments or issue a notice for any underpayments for the years 2000 to 2005. The court also directed the Lessor to issue future notices to the Lessee on the correct basis. Additionally, the court confirmed that the Lessee was obliged to contribute to the promotional fund under the lease terms. This comprehensive ruling provided clarity on the calculation and reimbursement of outgoings and the promotional fund contributions, ensuring adherence to the lease terms moving forward.