Tennent & ors v Moukhlina & ors (RLD)

The appeal before the court was between Tennent and Conroy, the lessors, and Moukhlina and others, the lessees, concerning the renewal of a retail lease. The dispute arose from an option to renew the lease, which was purportedly exercised by a third party. The lessors argued that the option was not validly exercised, while the lessees claimed that the renewal was effective. The matter was determined in the Queensland Civil and Administrative Tribunal (QCAT) and subsequently appealed to the Queensland Court of Appeal.

The primary legal issue before the court was whether the notice of exercise of the option to renew the lease, given by a third party on behalf of the lessees, was effective. The court had to determine if the third party had the authority to act on behalf of the lessees and if the lessors were bound by the renewal. Additionally, the court considered whether the lessors were estopped from denying the effectiveness of the notice due to their conduct.

The court found that the third party had the authority to act on behalf of the lessees, as evidenced by the course of dealings between the parties. The court held that the lessors were bound by the renewal as the notice was effective, despite being given by a third party. The court also found that the lessors were estopped from denying the effectiveness of the notice due to their conduct, which led the lessees to believe that the renewal was valid. The appeal was allowed, and the original lease was deemed to have been renewed for a period of three years, subject to the determination of the rent.

The court ordered that the lessors, Tennent and Conroy, had effectively renewed the original lease for a period of three years, commencing on 11 November 2006, subject to the determination of the rent. The parties were directed to file and serve any applications for costs within a specified timetable, and the Appeal Panel was permitted to make a decision without holding a hearing, as permitted by section 76 of the Administrative Decisions Tribunal Act 1997. The parties were also granted liberty to apply.