Zovic Holdings Pty Limited v Sader Investments Pty Limited

Zovic Holdings Pty Limited sued Sader Investments Pty Limited in the Local Court for the underpayment of rent over a significant period. The defendants counterclaimed, which the magistrate dismissed. Both parties agreed the dismissal was in error. The primary issues were whether the plaintiff had waived its right to a higher rent or elected not to receive it, and whether the plaintiff was entitled to goods and services tax (GST) on the underpaid rent. The appeal to the Supreme Court was heard by Justice Nye who found that the magistrate had erred in dismissing the cross-claim. The court determined that the plaintiff had not waived or elected not to receive the higher rent, and the plaintiff was also entitled to GST on the underpaid rent. The decision was favourable to the plaintiff on both counts. The court awarded costs to the plaintiff for the appeal, as well as the original proceedings in the Local Court.