Sneakerboy Retail Pty Ltd trading as Sneakerboy v Georges Properties Pty Ltd

Sneakerboy Retail Pty Ltd, trading as Sneakerboy, sought relief against forfeiture of their commercial lease from Georges Properties Pty Ltd. The dispute arose during the early stages of the COVID-19 pandemic. The retail business experienced a significant decline in trade, which resulted in the inability to pay rent. The primary issue before the court was whether the decline in business conditions due to the COVID-19 pandemic, in the absence of specific legislative relief, warranted the grant of equitable relief against forfeiture. A secondary issue was the consideration of the lessee's history of late payment of rent, despite the presence of a substantial bank guarantee.

The court considered the National Code of Conduct leasing principles and the balance between equity and law. It noted that while the Retail and Other Commercial Leases (COVID-19) Regulation 2020 was not in force at the relevant time, the court could still consider the extraordinary circumstances caused by the pandemic. The court acknowledged the lessee's history of late payment but emphasised the impact of the pandemic on the lessee's ability to trade. The substantial bank guarantee held by the lessors, which they chose not to draw down upon, was also considered. Ultimately, the court found that the decline in business conditions due to the pandemic was a significant factor warranting equitable relief against forfeiture. The court granted relief on the basis of the substantial hardship caused by the pandemic, while noting the lessors' security and the lessee's history of late payments.