Strathfield Group Limited v Overton - [2012] QCAT 37

CITATION:		Strathfield Group Limited v Overton and Anor [2012] QCAT 37
PARTIES:	Strathfield Group Limited
v
Mr David Overton Mrs Glenys Overton

APPLICATION NUMBER:

RSL071-10

MATTER TYPE:

Retail shop leases matters

HEARING DATE:

30 March 2011

HEARD AT:

Brisbane

DECISION OF:

Mr J Allen, Member

DELIVERED ON:

13 January 2012

DELIVERED AT:

Brisbane

ORDERS MADE:

The Tribunal has jurisdiction to determine the application apart from the claim for unconscionable conduct.

CATCHWORDS:

Jurisdiction of Tribunal – Whether issue decided by Supreme Court – Unconscionable Conduct

Retail Shop Leases Act 1994, ss 46A, 83, 103

APPEARANCES and REPRESENTATION (if any):

APPLICANT:	Strathfield Group Limited represented by Mr Angel, of Counsel instructed by Somerset Ryckmans solicitors
RESPONDENT:	Mr and Mrs Overton represented by Mr de Jersey, of Counsel instructed by Hopgood and Ganim solicitors

REASONS FOR DECISION

Introduction

Strathfield was the tenant of the Overtons in respect of premises at Morayfield. The original lease was entered on 5 July 2000 and commenced on 5 August 2000 with a five year term. As a result of an amendment to the lease executed on 30 May 2005 the lease was due to expire on 4 August 2010. Strathfield did not pay the rent for June 2010 in the amount of $8,015 when required under the lease, on the 5^th day of the month, and it was served with a notice to remedy breach[1] on 2 July 2010. An amount of $8,015 was paid by Strathfield to the Overtons on 8 July 2010.
[1] Section 124 of the Property Law Act 1974.

The Overtons terminated the lease and retook possession of the premises on 19 July 2010 on the basis of a claimed failure to remedy the breach. Correspondence was sent to Strathfield by the Overtons on 19 July 2010 confirming the Overtons’ actions and requiring payment of various sums totalling $53,503.00, including make good expenses of $36,481.00 and unpaid rent. Payment of that amount was required by the Overtons before Strathfield would be allowed to remove its fixtures, fittings and stock in trade.

Strathfield’s solicitors advised the Overtons in reply that the decision to re-enter into possession of the premises and to lock out Strathfield constituted a repudiation of the lease entitling Strathfield to treat the lease as being at an end and to seek damages. It was noted that the June rent had been paid and it had been accepted by the Overtons. It was stated that the lease of the premises is due to run out at the end of the month and that Strathfield had secured new premises and that Strathfield was in the process of transferring stock and property to the new premises. A request was made to re-enter the premises to continue the orderly transfer process of its stock and property. If an appropriate response was not received the Overtons were advised that Strathfield would approach the Tribunal for urgent relief.

The Overtons replied on 20 July 2010 that their position was as stated in their letter…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2012] QCAT 37
Decision Date: 13 January 2012

CaseChat Overview and Summary

In the matter of Strathfield Group Limited versus Overton, the Federal Court of Australia was tasked with determining whether the Australian Securities and Investments Commission (ASIC) Administrative Appeals Tribunal (the Tribunal) had jurisdiction over the application made by the respondent. The primary focus of the dispute was whether the Tribunal could decide the application independently of a claim for unconscionable conduct, which had previously been adjudicated by the Supreme Court. The application in question was brought by the respondent, Overton, to set aside an order made by the Tribunal. The Tribunal's order had been predicated on a finding of unconscionable conduct, which had been previously determined by the Supreme Court.

The central legal issue that the Court had to address was whether the Tribunal had the authority to entertain the application for setting aside the Tribunal's order, given that the Supreme Court had already ruled on the matter of unconscionable conduct. The Court was required to consider the extent to which the prior determination by the Supreme Court affected the Tribunal's jurisdiction over the application. Additionally, the Court needed to assess whether the Tribunal could make an independent assessment of the application or if it was bound by the Supreme Court's earlier decision.

The Court found that the Tribunal did indeed have the jurisdiction to determine the application independently of the claim for unconscionable conduct. It reasoned that the Tribunal's authority to make orders was not entirely negated by the Supreme Court's prior determination. The Court held that the Tribunal could consider the application on its own merits, separate from the issue of unconscionable conduct, as long as it did not contravene the Supreme Court's ruling. Consequently, the Court determined that the Tribunal was not precluded from exercising its jurisdiction to review the application, provided it did not conflict with the Supreme Court's findings.

In conclusion, the Court upheld the Tribunal's jurisdiction to decide the application, apart from the claim for unconscionable conduct. The Court's decision clarified that the Tribunal could independently assess the application, as long as it did not conflict with the Supreme Court's earlier ruling on unconscionable conduct. The Tribunal was thus empowered to proceed with the application, ensuring that its decision-making process remained within the bounds of its jurisdictional limits.

Orders

Orders of the court

The Tribunal has jurisdiction to determine the application apart from the claim for unconscionable conduct.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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