Strike Australia Pty Ltd v Data Base Corporate Pty Ltd

Strike Australia Pty Ltd (the appellant) and Data Base Corporate Pty Ltd (the respondent) were parties to a sub-lease. The dispute concerned the determination of the market rent for the sub-leased premises. The sub-lease stipulated that an expert valuer was to determine the market rent, having regard to specific matters, including comparable premises in the vicinity. The appellant contended that the valuer had failed to properly consider these matters, rendering the determination of market rent not binding. The appeal was heard by Bell P, Basten and Ward JJA.

The central legal issues before the Court of Appeal were whether the trial judge had erred in finding that the valuer had not had regard to market rents in the manner prescribed by the sub-lease, and consequently, whether the valuer's determination of market rent was binding on the parties. Further, the Court considered whether the valuer had erroneously taken into account the physical configuration of the premises or the tenant's property. The nature of expert valuation, specifically the distinction between acting as an expert and an arbitrator, was also relevant.

The Court of Appeal affirmed the trial judge's findings. It was held that the requirement to "have regard to" certain matters did not mean those matters were exhaustive, but rather that they were to be considered. The Court found that the valuer had not adequately considered market rents in the manner required by the sub-lease, and that the matters listed were not exhaustive. The valuer's determination was therefore not binding on the parties. The appeal was dismissed with costs.