Alamdo Holdings Pty Ltd v Croc’s Franchising Pty Ltd (No 2) [2023] NSWSC 60

Supreme Court New South Wales

Medium Neutral Citation: Alamdo Holdings Pty Ltd v Croc's Franchising Pty Ltd (No 2) [2023] NSWSC 60 Hearing dates: 5 - 7 December 2022 Date of orders: 09 February 2023 Decision date: 09 February 2023 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Plaintiff entitled to terminate lease and enter possession; plaintiff entitled to damages for unpaid rent and loss of bargain; plaintiff not entitled to relief in relation to fitout costs; plaintiff entitled to succeed against guarantors Catchwords: LEASES AND TENANCIES – Retail lease – where parties executed agreement for lease and lease for period of 10 years – where lease not registered – whether lease for 10 years nonetheless arose – effect of and proper construction of Retail and Other Commercial Leases (COVID-19) Regulation 2020 (NSW) and leasing principles of National Code of Conduct – proper construction of provisions in Small Business Commissioner Act 2013 (NSW) concerning admissibility of statements made at mediation – whether lessor entitled to terminate lease and enter possession – whether lessor elected to affirm lease – whether provision concerning recoupment of fitout costs a penalty – proper construction of guarantee – whether guarantors liable for obligations of lessee Legislation Cited: Civil Procedure Act 2005 (NSW) Conveyancing Act 1919 (NSW) Conveyancing (General) Regulation 2018 (NSW) Coronavirus Economic Response Package (Payments and Benefits) Act 2020 (Cth) Coronavirus Economic Response Package (Payments and Benefits) Rules 2020 (Cth) Evidence Act 1995 (NSW) Interpretation Act 1987 (NSW) Public Health (COVID-19 Mass Gatherings) Order 2020 (NSW) Public Health (COVID-19 Places of Social Gathering) Order 2020 (NSW) Real Property Act 1900 (NSW) Retail and Other Commercial Leases (COVID-19) Regulation 2020 (NSW) Retail Leases Act 1994 (NSW) Small Business Commissioner Act 2013 (NSW) Cases Cited: Alamdo Holdings Pty Ltd v Croc's Franchising Pty Ltd [2022] NSWSC 1746 Allianz Australia Insurance Limited v Delor Vue Apartments CTS 39788 [2022] HCA 38 Australian International Academy of Education Limited v Dr Nirmal Taluga & Ors [2011] NSWSC 647 Chan v Cresdon Pty Ltd (1989) 168 CLR 242; [1989] HCA 63 Commissioner of Stamp Duties (NSW) v Permanent Trustee Co Ltd (Trustee for Anzareno Dal Bon and Silvanio Dal Bon) (1987) 9 NSWLR 719 Commissioner of Taxation v SNF (Australia) Pty Ltd (2011) 193 FCR 149; [2011] FCAFC 74 Cordon Investments Pty Ltd v Lesdor Properties Pty Ltd [2012] NSWCA 184 Dunlop Pneumatic Tyre Co Ltd v New Garage & Motor Co Ltd [1915] AC 79 Gray t/as Clarence Valley Plumbing Services v Ware Building Pty Ltd [2013] NSWCA 271 GWC Property Group Pty Ltd v Higginson [2014] QSC 264 JC v Director of Public Prosecutions (NSW) (2014) 87 NSWLR 320; [2014] NSWCA 228 Lazaris v R [2014] NSWCCA 163 Leitz Leeholme Stud Pty Ltd v Robinson [1977] 2 NSWLR 544 Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service (2010) 383 ALR 577; [2010] NSWCA 268 Paciocco v Australia and New Zealand Banking Group Ltd (2016) 258 CLR 525; [2016] HCA 28 Panayi v Deputy Commissioner of Taxation (2017) 319 FLR 228; [2017] NSWCA 93 Pozetu Pty Ltd v Alexander James Pty Ltd (2016) 18 BPR 36,141; [2016] NSWCA 208 Progressive Mailinghouse v Tabali Pty Ltd (1985) 157 CLR 17; [1985] HCA 14 Regina v Reid [1999] NSWCCA 258 Seltsam Pty Limited v McGuiness; James Hardie & Coy Pty Limited v McGuiness (2000) 49 NSWLR 262; [2000] NSWCA 29 Seymour Whyte Constructions Pty Ltd v Ostwald Bros Pty Ltd (in liq) (2019) 99 NSWLR 317; [2019] NSWCA 11 Strzelecki Holdings Pty Ltd v Cable Sands Pty Ltd (2010) 41 WAR 318; [2010] WASCA 222 Telado Pty Ltd v Vincent (1996) 7 BPR 14,874 Todarello Property Investments Pty Ltd v GJA Kalra Pty Ltd [2021] NSWSC 1678 Woollahra Municipal Council v Secure Parking Pty Ltd (No 2) [2015] NSWSC 452 Texts Cited: P Herzfeld and T Prince, Interpretation (2nd ed, 2020, Thomson Reuters) Category: Principal judgment Parties: Alamdo Holdings Pty Ltd (Plaintiff) Croc's Franchising Pty Ltd (First Defendant) Brett Christopher Aldons (Second Defendant) Lawrence John Cusdin (Third Defendant) State of New South Wales (Fourth Defendant) Representation: Counsel: J A C Potts SC with A R Langshaw (Plaintiff) G Farland with D Meyerowitz-Katz (First, Second and Third Defendants) L Waterson (Fourth Defendant)