Synergy Scaffolding Holdings Pty Ltd v Goodman Funds Management Australia Limited as trustee for GAI1 RPF Subtrust of the Hayesbery [2023] NSWSC 538

Supreme Court New South Wales

Medium Neutral Citation: Synergy Scaffolding Holdings Pty Ltd v Goodman Funds Management Australia Limited as trustee for GAI1 RPF Subtrust of the Hayesbery [2023] NSWSC 538 Hearing dates: 26, 27 April 2023; further written submissions 1 May 2023 Decision date: 22 May 2023 Jurisdiction: Equity - Real Property List Before: Peden J Decision: The Plaintiffs' Summons is dismissed with costs: see [160] Catchwords: LEASES AND TENANCIES — Default and termination — Relief against forfeiture — Forfeiture of a lease — Where plaintiffs are sublessees — Where sublessees sought to stay forfeiture on terms that new lease be granted — Whether sublessees entitled to relief if head lessee repudiated head lease — Whether s 130 of the Conveyancing Act 1919 (NSW) is available where head lessee relies on common law rights — Where head lessee repudiated contract and s 130 not available CONTRACTS — Termination — Repudiation of contract — Whether head lessee repudiated lease with head lessor — Where head lessee entered voluntary administration and administrators did not seek to exercise property rights — Whether the issue of a s 443B notice and an attached letter amounted to repudiation — Where repudiation established other than by reference to s 443B notice LEASES AND TENANCIES — Relief against forfeiture — Conditions under new lease to be granted to a sublessee — Broad discretion to be exercised as to appropriate terms according to the circumstances — Whether sublessee should be required to pay head lessee's rental arrears — Whether sublessee should be required to rectify a stormwater basin — Whether a bank guarantee should be given and for what duration — Whether lease should be on a "triple net" or "net" basis Legislation Cited: Civil Procedure Act 2005 (NSW) s 98 Civil Procedure Rules (UK) Conveyancing Act 1919 (NSW) ss 85, 129, 130 Corporations Act 2001 (Cth) s 443B Conveyancing and Law of Property Act 1881 (UK) s 14(3) Conveyancing and Law of Property Act 1892 (UK) s 4 Property Law Act 1925 (UK) s 146 Cases Cited: Abbey National Building Society v Maybeech Ltd [1985] Ch 190 ADCO Constructions Pty Ltd v Goudappel (2014) 254 CLR 1 Batiste v Lenin (2002) 11 BPR 20,403 Billson v Residential Apartments Ltd [1991] 3 WLR 264 Burt v Gray [1891] 2 QB 98 Cadogan v Dimovic [1984] 1 WLR 609 Chatham Empire Theatre (1955) Ltd v Ultrans Ltd [1961] 2 All ER 381 Commonwealth Development Bank of Australia v Eagle Hotels Pty Limited [1990] ANZ Conv R 100 Creery v Summersell and Flowerdew and Co Ltd [1949] Ch 751 Creswell v Davidson (1887) 56 LT 811 Dainford Ltd v Smith (1985) 155 CLR 342 Egerton v Jones [1939] 2 KB 702 Elevation (NSW) Pty Ltd v The Uniting Church [2014] NSWSC 331 English and Australian Copper Co Ltd v Thomas Johnson (1911) 13 CLR 490 Ewart v Fryer [1901] 1 Ch 499 Fleeton v Fitzgerald (1998) 9 BPR 16,715 Joint Coal Board v Noone Pty Ltd (1994) 3 BPR 9440 Keybridge Capital Ltd v WAM Active Ltd (2021) 105 NSWLR 278 Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd (2007) 233 CLR 115 Laurinda Pty Ltd v Capabala Park Shopping Centre Pty Ltd (1989) 166 CLR 623 Leahy v Austwin Management Services Pty Ltd [2011] QCA 186 Leahy v Fimiston Investments Pty Ltd [2011] QSC 22 Legione v Hateley (1983) 152 CLR 406 Nind v Nineteenth Century Building Society [1894] 2 QB 226 Pioneer Quarries (Sydney) Pty Ltd v Permanent Trustee Co of NSW Ltd (1970) 2 BPR 9562 Progressive Mailing House Pty Ltd v Tabali Pty Ltd (1985) 157 CLR 17 Re Oliver Brown Pty Ltd (No 2) (2012) 17 BPR 32253 Riviera Holdings Pty Ltd v Fingal Glen Pty Ltd [2013] SASC 77 Shepherd v Felt Textiles of Australia Ltd (1931) 45 CLR 359 Shiloh Spinners Limited v Harding [1973] AC 691 Silvia v FEA Carbon Pty Ltd (2010) 185 FCR 301 Stieper v Deviot Pty Ltd (1977) 2 BPR 9602 Tutita Pty Ltd v Ryleaco Pty Ltd (1989) 4 BPR 9635 Wardens and Governors of Cholmeley School Highgate v Sewell [1894] 2 QB 906 Wilkinson v S & S Gikas Pty Ltd (2006) 12 BPR 23,685 World Best Holdings Limited v Sarker (2010) 14 BPR 27,549 Texts Cited: Brendan Edgeworth, Butt's Land Law (7th ed, 2017, Lawbook Co) Clyde Croft, Robert Hay and Luke Virgona, Commercial Tenancy Law (4th ed, 2018, LexisNexis) Law Commission of England and Wales, Codification of the Law of Landlord and Tenant: Forfeiture of Tenancies (Report, March 1985) Stephen Tromans, 'Forfeiture of leases: relief for underlessees and holders of other derivative interests' (1986) Conveyancer and Property Lawyer 187 Stuart Bridge, Elizabeth Cooke and Martin Dixon, Megarry and Wade's The Law of Real Property (9th ed, 2019, Sweet & Maxwell) W D Duncan and Sharon Christensen, Commercial Leases in Australia (9th ed, 2020, Lawbook Co) Category: Principal judgment Parties: Synergy Scaffolding Holdings Pty Ltd (First Plaintiff) MRL Technologies Pty Ltd (Second Plaintiff) Goodman Funds Management Australia Limited (First Defendant) The Trust Company Limited (Second Defendant) Representation: Counsel: T Lynch SC and A Carr (Plaintiffs) M Izzo SC and T Boyle (Defendants)