United Petroleum Pty Ltd v Coastal Service Centres Pty Ltd [2024] NSWCA 97

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: United Petroleum Pty Ltd v Coastal Service Centres Pty Ltd [2024] NSWCA 97 Hearing dates: 11-12 March 2024 Date of orders: 3 May 2024 Decision date: 03 May 2024 Before: White JA at [1]; Harrison JA at [2]; Basten AJA at [3] Decision: (1) Dismiss the appeal from the judgment and orders in the Equity Division. (2) Order that the appellant pay the respondent's costs in this Court. Catchwords: APPEALS – fact-finding – challenge to genuineness of belief – witness' credibility – belief not glaringly improbable – whether belief objectively unreasonable – witness with expertise to form belief – no expert evidence to contradict reasonableness CONTRACTS – commercial lease – construction – implication of terms – landlord's power to issue notice where leased property suffered fire damage – effect of notice to allow landlord to terminate lease – criterion for issue of notice was landlord's belief that repair "impracticable or undesirable" – whether belief to be objectively reasonable – whether belief to be formed in good faith LEASES AND TENANCIES – termination without default – leased property damaged by fire – lessor's power to serve notice if repair impracticable or undesirable – effect of notice to allow termination – whether notice given within reasonable time – period of reasonable time commencing when damage occurred – further period from time when lessor formed opinion permitting service of notice Legislation Cited: Conveyancing Act 1919 (NSW), s 133E Cases Cited: Alcatel Australia Ltd v Scarcella (1998) 44 NSWLR 349 Buck v Bavone (1976) 135 CLR 110; [1976] HCA 24 Burger King Corporation v Hungry Jack's Pty Ltd (2001) 69 NSWLR 558; [2001] NSWCA 187 Elder's Trustee and Executor Company Ltd v Higgins (1963) 113 CLR 426; [1963] HCA 48 Finch v Telstra Super Pty Ltd (2010) 242 CLR 254; [2010] HCA 36 Fox v Percy (2003) 214 CLR 118; [2003] HCA 22 Hughes Aircraft Systems International v Airservices Australia (1997) 76 FCR151; [1997] FCA 558 Hughes Bros Pty Ltd v Trustees of the Roman Catholic Church, Archdiocese of Sydney (1993) 31 NSWLR 91 Karger v Paul [1984] VR 161 Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service [2010] NSWCA 268; 383 ALR 577 McIntosh v Dylcote Pty Ltd [1999] NSWSC 230; 9 BPR 16805 Realestate.com.au Pty Ltd v Hardingham [2022] HCA 39; (2022) 97 ALJR 40 Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234 Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 240 CLR 45; [2002] HCA 5 Service Station Association Limited v Berg Bennett & Associates Pty Ltd (1993) 45 FCR 84; [1993] FCA 638 The King v Connell; Ex parte Hetton Bellbird Collieries Ltd (1944) 69 CLR 407; [1944] HCA 42 Category: Principal judgment Parties: United Petroleum Pty Ltd (Appellant) Coastal Service Centres Pty Ltd (Respondent) Representation: Counsel: A Harding SC / M Youssef (Appellant) D Klineberg / C Clarke (Respondent)