Softwash Castle Towers Pty Ltd v Queensland Investment Corporation (No 2)

Softwash Castle Towers Pty Ltd brought an action against the Queensland Investment Corporation, seeking compensation for the fitout of the premises pursuant to a clause in the lease agreement. The court was required to determine whether an agreement about depreciation rates, made specifically for the litigation, should replace the historical depreciation rates as set out in the financial reports and income tax returns. The court also had to decide whether certain furniture items, which were not installed, were compensable as part of the fitout.

The court considered the nature of the lease agreement, the specific terms regarding the fitout, and the historical depreciation rates. It examined the purpose of the agreement about depreciation rates and whether it was intended to replace the historical rates for the purpose of calculating compensation. The court also assessed whether the non-installed furniture items fell within the scope of the compensation clause. Ultimately, the court concluded that the agreement about depreciation rates was not intended to replace the historical rates for the purpose of compensation. The court also determined that the non-installed furniture items were not compensable as part of the fitout.

The court found in favour of Softwash Castle Towers Pty Ltd and ordered the Queensland Investment Corporation to pay compensation for the fitout of the premises. The compensation was calculated using the historical depreciation rates as set out in the financial reports and income tax returns. The court also ruled that the non-installed furniture items were not compensable. The final orders of the court included a determination of the amount of compensation owed by the Queensland Investment Corporation to Softwash Castle Towers Pty Ltd.