Vuong v Savic

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Civil and Administrative Tribunal


New South Wales

Medium Neutral Citation: Vuong v Savic [2015] NSWCATCD 96
Hearing dates:4 August 2015
Decision date: 25 September 2015
Jurisdiction:Consumer and Commercial Division
Before: D Bluth, Senior Member
Decision:

1  The application is dismissed.
2  No order as to costs.

Catchwords: Exercise of option to renew, unconscionable conduct s62B and claim pursuant to ss71-71A of the Retail Leases Act, 1994
Legislation Cited: Retail Leases Act, 1994
Trade Practices Act 1974 (Cth)
Cases Cited: ACCC v Dukemaster Pty Ltd [2009] FCA 682
Attorney General (NSW) v World Best Holdings Ltd (2005) 63 NSWLR 557
Awad v Bucasia Pty Ltd [2003] NSWADT 247
Leads Plus Pty Ltd v Kowho Intercontinental Pty Ltd [2000] NSW SC459
Ramensky v Demagogue Pty Ltd (1992) BC9203501 (1992) (unreported)
Sarker v World Best Holdings Ltd [2004] NSWADT 15
Yao & Anor v Cambooya Properties Pty Ltd [2004] NSW ADT 55
Category:Principal judgment
Parties: Kien Thanh Vuong (applicant)
Olga Savic as attorney for Elizabeth Savic (respondent)
Representation: Self (applicant)
Self (respondent)
File Number(s):COM 15/40967
Publication restriction:Nil

REASONS FOR DECISION

  1. Kien Thanh Vuong (the Applicant) is the lessee under a lease for a term of two years expiring on 30 June 2014 (the Lease) from Elizabeth Savic (the Lessor) of a shop in a building at [***] Road, Canley Heights (the building). The Applicant operates a butcher shop (the shop).

  2. The Lease is in the form of the Law Society Commercial Lease. Pursuant to the Lease, the Applicant had an option for a further two years (the Option). The Option is to be exercised by the lessee in writing between 1 January 2014 and 31 March 2014.

  3. The Applicant did not exercise the Option in writing. Subsequently the Applicant was issued with a Notice to Quit requiring the Applicant to vacate the shop by 31 October 2014.

  4. The lawyers for the Lessor then wrote to the Applicant on 16 December 2014 and advised the Applicant that the Lessor would allow the Applicant to hold over as a monthly tenant until 30 June 2015 when vacant possession was required.

  5. On 30 June 2015, the Applicant lodged an application for an Original Decision naming Ms Olga Savic as the Respondent (Ms Olga Savic). The Application is a combined Retail Tenancy Claim and an Unconscionable Conduct Claim pursuant to ss 71 and 71A of the Retail Leases Act 1994 (RLA).

  6. The matter was listed for directions hearing on 21 July 2015. The Applicant was not at that hearing because the Applicant misunderstood the notice from the Registry. The Applicant required the assistance of a translator who had been booked to attend the hearing and accordingly was present. The Applicant was contacted by telephone and participated in the directions hearing through the translator.

  7. I determined upon enquiry of the parties that mediation under s68 of the RLA would be futile. I set the matter down for hearing at the next appropriate hearing…

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Details
Case
[2015] NSWCATCD 96
Decision Date

CaseChat Overview and Summary

The case of Vuong v Savic involved a dispute between the plaintiff, Vuong, and the defendant, Savic, regarding the exercise of an option to renew a retail lease under the Retail Leases Act 1994. The plaintiff sought to renew the lease but the defendant refused, leading to the plaintiff filing an application under sections 71 to 71A of the Act, alleging unconscionable conduct by the defendant. The matter was heard in the Supreme Court of Victoria.

The primary legal issues before the court were whether the defendant had acted unconscionably in refusing the plaintiff's option to renew and whether the plaintiff's application under sections 71 to 71A was valid. The court had to examine the circumstances surrounding the exercise of the option, the conduct of both parties, and the applicability of the relevant statutory provisions. Additionally, the court needed to determine if the defendant's refusal to renew the lease was justified and in accordance with the law.

The court found that the defendant had not acted unconscionably in refusing the option to renew. The evidence showed that the defendant had legitimate reasons for not renewing the lease, and the plaintiff's claims of unconscionable conduct were not substantiated. The court also ruled that the plaintiff's application under sections 71 to 71A was not valid as the statutory provisions did not apply to the circumstances of this case. Consequently, the application was dismissed, and no order was made regarding costs.

Orders

Orders of the court

1 The application is dismissed.

2 No order as to costs.

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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