Wyles v Health Pathways P/L

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DISTRICT COURT OF QUEENSLAND

CITATION:

Wyles & Anor v Health Pathways P/L [2010] QDC 398

PARTIES:

GWENDA MAY WYLES and JAMES FRANCIS WYLES  
(Plaintiffs)

And

HEALTH PATHWAYS PTY LTD ACN 101 359 835
(Defendant)

FILE NO/S:

D66/08

DIVISION:

Civil Jurisdiction

PROCEEDING:

Hearing

ORIGINATING COURT:

District Court, Maroochydore

DELIVERED ON:

26 October 2010

DELIVERED AT:

Maroochydore

HEARING DATE:

11 October 2010

JUDGE:

Robertson DCJ

ORDER:

Judgment for the plaintiffs for $9703.91

CATCHWORDS:

LEASES, CONTRACT- Defendant leased premises from plaintiffs which did not include a lot plan or real property description, where defendant abandoned premises alleging breaches by the plaintiffs for not including a garage space in leased premises-

DAMAGES- whether plaintiffs are entitled to damages including a rent free period offered to new tenant.

Legislation

Fair Trading Act 1989 (Qld)

Cases Cited

Commonwealth v Amann Aviation Pty Ltd [1992] 174 CLR 64

Lumbers v W Cook Builders Pty Ltd (in liquidation) [2008] HCA 27

Pohlmann v Harrison and Anor [1993] QCA 1.

Povey & Matthews Pty Ltd v Paul [1987] 162 CLR 221

COUNSEL:

Mr S.M Gerber for the plaintiffs

Mr D. Topp for the defendant

SOLICITORS:

Chris Suttons Law for the plaintiffs

Greenhalgh Pickard Solicitors for the defendant

  1. In 2002 Mr and Mrs Wyles (the plaintiffs) owned unit 11/100 Burnett Street, Buderim described as Lot 11 on BUP103680 which included a 76m2 office space with balcony and two garage spaces of 18m2 each.  They engaged Mr Trevor Hicks of Trevor Hicks Realty in Buderim to lease the premises and Mr Hicks caused an advertisement to be placed in the Buderim Chronicle which described the premises as “70m2 + Balcony + storage”.  David Taylor, a director of Health Pathways Pty Ltd (the defendant) responded, either to the advertisement or to a notice in the window of the agency and, in due course applied to lease “Suite 11/100 Burnett Street”.  A “Commercial Tenancy Agreement” was prepared by one of Mr Hicks’ staff between the plaintiffs and the defendant which commenced on 8 August 2002.  The “premises” were described in the lease as “11/100 Burnett Street Buderim 4556”. 

  1. Prior to the lease being signed, Mr Hicks had shown Mr Taylor and another director of the defendant Lucille Humphries the premises to be leased.  It is common ground that Mr Hicks showed Mr Taylor and Ms Humphries the office space and balcony and only one garage.

  1. Mr Hicks was aware at this time that the plaintiffs had already leased the second garage to another entity.  Mr Taylor says that he viewed the premises twice and it was on the second occasion when Ms Humphries was present that he was first shown the garage area.  He says he noticed that there were two garages marked “11” and he asked Mr Hicks why there were two.  He says Mr Hicks responded “that has nothing to do with you”.  Mr Hicks has no recollection of saying this and doubts he would have spoken in this way to a prospective tenant.  Ms Humphries, who…

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Details
Case
[2010] QDC 398
Decision Date

CaseChat Overview and Summary

The case of Wyles v Health Pathways P/L involved a dispute between the plaintiffs, Wyles, who were the lessors of a property, and the defendants, Health Pathways P/L, who were the lessees. The defendants had leased premises from the plaintiffs, but the lease agreement did not include a lot plan or a real property description. The defendants later abandoned the premises and alleged that the plaintiffs had breached the lease by not including a garage space in the leased premises. The plaintiffs claimed damages, including a rent-free period offered to a new tenant. The matter was heard in the Queensland Civil and Administrative Tribunal.

The court was required to decide several legal issues. Firstly, whether the lease agreement was sufficiently clear and specific to allow the defendants to enforce a term regarding the inclusion of a garage space. Secondly, whether the plaintiffs were entitled to damages, including the rent-free period offered to a new tenant. Thirdly, the court had to determine the appropriate measure of damages if any.

The court held that the lease agreement was not sufficiently specific to allow the defendants to enforce a term regarding the inclusion of a garage space. The court found that the lease agreement did not provide a clear and unambiguous description of the premises, and therefore, the defendants could not rely on a term that was not explicitly stated. The court also held that the plaintiffs were entitled to damages, including the rent-free period offered to a new tenant. The court found that the plaintiffs had suffered a loss of rent during the period when the premises were vacant, and the rent-free period offered to a new tenant was a reasonable measure of damages. The court ordered judgment for the plaintiffs for $9,703.91, which represented the lost rent during the vacancy period and the rent-free period offered to a new tenant.

Orders

Orders of the court

Judgment for the plaintiffs for $9703.91

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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