Byrnes v Jokona Pty Ltd [2002] FCA 41

FEDERAL COURT OF AUSTRALIA

Byrnes v Jokona Pty Ltd [2002] FCA 41

contract – lease – lease of property for business venture – repudiation claimed – collateral contract claimed – estoppel claimed

LANDLORD AND TENANT – covenant for quiet enjoyment – express covenant – general principles – whether material interference with possession – activities of third party and of landlord – whether interference with possession interfered with commercial use of premises for the desired purposes such that business failed

TRADE PRACTICES – claim under Trade Practices Act that landlord failed to make available land surrounding leased premises for expansion of business

DAMAGES – assessment of damages for breach of lease – general principles – where argued business doomed to fail – where lease terminated before term – assessment of impact of interference and of lost future opportunity – calculation of interest

Trade Practices Act 1974 (Cth) Federal Court of Australia Act 1976 (Cth) s 51A Hawkesbury Nominees Pty Ltd v Battik Pty Ltd [2000] FCA 185 applied The Progressive Mailing House Pty Ltd v Tabali Pty Ltd (1985) 157 CLR 17 applied and discussed National Carriers v Panalpina (Northern) Ltd [1981] AC 675 applied Goldsworthy Mining Ltd v FC of T (1973) 128 CLR 199 applied O'Keefe v Williams (1910) 11 CLR 171 applied Southwark LBC v Tanner [2001] 1 AC 1 applied Kenny v Preen [1963] 1 QB 499 applied Sarson v Roberts [1895] 2 QB 395 applied Brilee Consultants Pty Ltd v Tibal Holdings Pty Ltd (1984) 3 BPR 9272 applied Bradford House Pty Ltd v Leroy Fashion Group Ltd (1983) 46 ALR 305 applied Teubner v Humble (1963) 108CLR 491 applied Bus v Sydney County Council (1989) 167 CLR 78 applied Browne v Flower [1911] 1 Ch 219 referred to Phelps v City of London Corp [1916] 2 Ch 255 referred to Aussie Traveller Pty Ltd v Marklea Pty Ltd [1997] 1 Qd R 1 applied Owen v Gadd [1956] 2 QB 99 referred to JC Berndt Pty Ltd v Walsh [1969] SASR 34 referred to Martins Camera Corner Pty Ltd v Hotel Mayfair [1976] 2 NSWLR 15 referred to Todburn Pty Ltd v Taormina International Pty Ltd (1990) 5 BPR 11,173 applied Hongkong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26 referred to Cehave NV v Bremer Handelsgesellschaft m.b.H. [1976] QB 44 referred to Reardon Smith Line Ltd v Yngvar Hansen-Tangen [1976] 1 WLR 989 referred to Federal Commerce and Navigation Co Ltd v Molena Alpha Inc [1979] AC 757 referred to Bunge Corp v Tradax Export SA [1981] 1 WLR 711 referred to Shevill v Builders Licensing Board (1982) 149 CLR 620 referred to Associated Newspapers v Bancks (1951) 83 CLR 322 referred to Tramways Advertising Pty Ltd v Luna Park (NSW) Ltd (1938) 38 SR (NSW) 632 referred to Ankar Pty Ltd v National Westminster Finance (Australia) Ltd (1987) 162 CLR 549 referred to Honner v Ashton (1979) 1 BPR 9478 discussed Woodfactory Pty Ltd v Kiritos Pty Ltd (1985) 2 NSWLR 105 referred to J & C Reid Pty Ltd v Abau Holdings (1988) NSW ConvR 55-416 referred to Ross T Smyth & Co v T D Bailey Son & Co [1940] 3 All ER 60 referred to Larratt v Bankers & Traders' Insurance Co (1941) 41 SR 215 referred to Lagouvardis v Brett and Janet Cottee Pty Ltd (1994) NSW ConvR 55-714 referred to Mersey Steel & Iron Co Ltd v Naylor, Benzon & Co (1884) 9 App Cas 434 referred to Decro Wall International SA v Practitioners in Marketing Ltd [1971] 1 WLR 361 referred to Fullers' Theatres Ltd v Musgrave (1923) 31 CLR 524 referred to Knatchbull v Grueber (1817) 3 Mer 124 referred to Wallis, Son & Wells v Pratt & Haynes [1910] 2 KB 1003 referred to Wallis, Son & Wells v Pratt & Haynes [1911] AC 394 referred to Bowes v Chaleyer (1923) 32 CLR 159 referred to Amann Aviation Pty Ltd v Commonwealth (1990) 22 FCR 527 referred to Laurinda Pty Ltd v Capalaba Park Shopping Centre (1989) 166 CLR 623 referred to Tricontinental Corporation v HDFI Ltd (1990) 21 NSWLR 689 referred to Enzed Holdings Limited v Wynthea Pty Ltd (1984) 3 IPR 619 applied Robinson v Harman (1848) 1 Exch 850, 154 ER 363 applied Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64 applied Fink v Fink (1946) 74 CLR 127 applied Jones v Schiffmann (1971) 124 CLR 303 applied Sony Computer Entertainment Australia Pty Ltd v Stirling [2001] FCA 1852 applied Malec v J C Hutton Pty Ltd (1990) 169 CLR 638 applied Sellars v Adelaide Petroleum NL (1994) 179 CLR 332 applied Mallett v McMonagle [1970] AC 166 applied McCrae v Commonwealth Disposals Commission (1951) 84 CLR 377 referred to Johnson v Perez (1988) 166 CLR 351 referred to Thompson v Smith Shiprepairers (Northshields) [1984] QB 405 referred to Haines v Bendall (1991) 172 CLR 60 referred to Treitel The Law of Contract (7th Ed) Treitel Remedies for Breach of Contract: A Comparative Account (Oxford, 1988) Carter Breach of Contract (2nd Ed) Restatement of the Law of Contract 2d. Mark Peter Byrnes and Ors v Jokona Pty Limited N 1074 of 1997 ALLSOP J SYDNEY 31 JANUARY 2002