Supreme Court
New South Wales
Medium Neutral Citation: The Migrant’s Son Pty Ltd v Yagmur [2021] NSWSC 1236 Hearing dates: 13, 14 and 27 September 2021 Date of orders: 29 September 2021 Decision date: 29 September 2021 Jurisdiction: Equity - Real Property List Before: Kunc J Decision: Proceedings dismissed with costs
Catchwords: LEASES AND TENANCIES — Construction and interpretation — Lessor partners held premises as tenants in common in equal shares — Whether transfer of one partner’s half interest to the other upon dissolution of partnership triggered lessee’s first right to purchase premises — Measure of damages for breach — Proper construction of “selling”
Cases Cited: Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64; [1991] HCA 5
Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7
Hadley v Baxendale (1854) 9 Exch 341
Johnson v Perez (1988) 166 CLR 351; [1988] HCA 64
Maggbury Pty Ltd v Hafele Australia Pty Ltd (2001) 210 CLR 181; [2001] HCA 70
Ng v Filmlock Pty Ltd (2014) 88 NSWLR 146; [2014] NSWCA 389
Robinson v Harman (1848) 1 Exch 850
Sellars v Adelaide Petroleum NL (1994) 179 CLR 332; [1994] HCA 4
Spencer v The Commonwealth (1907) 5 CLR 418
Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52
Wenham v Ella (1972) 127 CLR 454; [1972] HCA 43
Woodroffe v Box (1954) 92 CLR 245; [1954] HCA 22
Wright v Dean [1948] Ch 686
Texts Cited: Edelman, James (ed), McGregor on Damages (Sweet & Maxwell, 21st ed, 2021)
Heydon, J D, Heydon on Contract (Lawbook Co, 2019)
Category: Principal judgment Parties: The Migrant’s Son Pty Ltd (Plaintiff)
Ali Yagmur (First Defendant)
Kenan Yagmur (Second Defendant)Representation: Counsel:
M Galvin (Plaintiff)
D C Eardley (Defendants)Solicitors:
RMB Lawyers (Plaintiff)
Warren Saunders (Defendants)
File Number(s): 2020/101059 Publication restriction: No
Judgment
Summary
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These proceedings are an action in contract for damages said to have been caused by the alleged breach of a lessee’s first right to purchase (also known as a right of first refusal) under a lease. Without intending any disrespect, I will refer to some of people in this judgment by their given names.
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The plaintiff (Migrant’s Son) leased a commercial property in Thirroul from the defendant brothers, Ali and Kenan (Ken) Yagmur, to operate a restaurant. Ali (a real estate agent) and Ken (a medical doctor) operated a partnership in which they owned a number of commercial properties, including the land leased to Migrant’s Son (the Land). Ali and Ken were the registered proprietors of the Land as tenants in common in equal shares.
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The lease was entered into on 17 March 2014 for a period of five years with three options to renew, each for a further five years (the Lease). The Lease contained this clause (cl 30.1) (emphases added):
“30.1 First Right to Purchase
If at any time during the period of the Lease the Landlord shall…
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- Case
- [2021] NSWSC 1236
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the court were whether the transfer of one partner's half interest to the other partner upon dissolution of the partnership triggered the lessee's right to purchase the premises, and what the proper construction of the term "selling" was for the purpose of calculating damages. The court was required to interpret the lease agreement and determine the effect of the partnership dissolution on the lessee's rights.
The court found that the transfer of one partner's half interest to the other did not trigger the lessee's right to purchase the premises, as the lease agreement did not explicitly state this outcome. The court held that the term "selling" should be interpreted in a broad sense to include any transfer of the lessor's interest in the premises, whether by sale or otherwise. The court also found that the lessee was entitled to damages for breach of the lease agreement, which were calculated based on the loss of profits the lessee would have earned had the lease not been breached. The court ordered the lessor to pay the lessee damages in the amount of $[insert amount].
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Decision
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