Wilson v LP and MJ Pty Ltd

In the case of Wilson v LP and MJ Pty Ltd, the tenant, Wilson, had commenced proceedings in the Civil and Administrative Tribunal (Tribunal) to recover a minor debt under the Retail Shop Leases Act 2003 (NSW). The respondent, LP and MJ Pty Ltd, filed an application to strike out the claim which was dismissed. The lessors then sought leave to appeal against the dismissal of the strike-out application, arguing that the Tribunal lacked jurisdiction because the parties had not engaged in the requisite mediation prior to the proceedings. The central issue before the court was whether the Tribunal had jurisdiction to hear the minor debt application when the parties had not completed the required mediation process.

The court found that the failure to undertake the mandatory mediation prior to the minor debt application was a jurisdictional error. The legislation explicitly requires mediation before initiating minor debt proceedings in the Tribunal. Since this condition was not met, the court concluded that the Tribunal did not have the requisite jurisdiction to hear the case. Consequently, the appeal was allowed, and the order dismissing the application to strike out was set aside. The minor debt application was also dismissed.

In light of the findings, the court granted the leave to appeal and allowed the appeal. The order dismissing the application to strike out was set aside, and the minor debt application was dismissed. The court’s decision underscores the importance of adhering to the mandatory mediation requirement before initiating minor debt proceedings in the Tribunal.