Ryals Hotel Pty Ltd v Zhaos Pty Ltd [2020] NSWSC 719

Supreme Court New South Wales

Medium Neutral Citation: Ryals Hotel Pty Ltd v Zhaos Pty Ltd [2020] NSWSC 719 Hearing dates: 25-27 May 2020 Date of orders: 11 June 2020 Decision date: 11 June 2020 Jurisdiction: Equity Before: Darke J Decision: Plaintiff lessee entitled to recover damages of $190,000 plus pre-judgment interest for breaches of the lease by the first defendant. Catchwords: CONTRACTS — remedies — damages — assessment — failure of landlord to install a new lift in the hotel property amounted to breach of the lease — hotel without a functioning lift for a six month period — lift works undertaken in that period — assessment of effect on profitability of hotel business — whether assessment of damages should include a separate amount for inability to use the basement during the lift installation — held that no damages should be given for non-use of the basement where it was not a profit generating venue — whether tenant entitled to abatement of rent under lease — abatement available only if the premises or building are damaged or destroyed — held that the carrying out of lift works did not cause damage within meaning of abatement provision — tenant not entitled to abatement of rent Legislation Cited: Civil Procedure Act 2005 (NSW), s 100 Cases Cited: Commonwealth of Australia v Amann Aviation Pty Ltd (1991) 174 CLR 64 O'Brien v Bank of Western Australia Ltd [2013] NSWCA 71 Placer (Granny Smith) Pty Ltd v Thiess Contractors Pty Ltd (2003) 77 ALJR 768; [2003] HCA 10 Robinson v Harman (1848) 1 Exch 850 Tabcorp Holdings Ltd v Bowen Investments Pty Ltd (2009) 236 CLR 272; [2009] HCA 8 Zorom Enterprises v Zabow (2007) 71 NSWLR 354; [2007] NSWCA 106 Category: Principal judgment Parties: Ryals Hotel Pty Ltd (Plaintiff) Zhaos Pty Ltd (First Defendant) Motel Links Pty Ltd (in liquidation) (Second Defendant) Representation: Counsel: Mr D R Stack (Plaintiff) Mr J T Johnson (First Defendant)