LUBO MEDICH HOLDINGS PTY LTD v D and A LU PTY LTD and ANOR [1996] NSWCA 332

LUBO MEDICH HOLDINGS PTY LTD v D and A LU PTY LTD and ANOR

SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL

GLEESON CJ, MAHONEY P and BEAZLEY JA 8 May 1996, 8 May 1996 [1996] NSWCA 332

CONTRACTS LANDLORD AND TENANT — whether lessee had exercised option to renew — whether correspondence constituted agreement as to the continuation of the lease.

CONTRACTS ESTOPPEL — whether lessee estopped from denying existence of a certain state of affairs.

CONTRACT LEASE

A lessor and a lessee were in dispute as to whether the lessee had exercised an option to renew. Against that background there was an exchange of correspondence which was said to constitute an agreement in writing as to the continuation of the lease - HELD - The correspondence did not constitute such an agreement.

ESTOPPEL

Alternatively it was argued that the respondent was estopped from denying that a certain state of affairs existed - HELD - No basis for such estoppel had been shown.

ORDERS

Appeal dismissed with costs.

Gleeson CJ This is an appeal from a decision of his Honour Judge Dent QC in the District Court. His Honour dismissed an action brought by the appellant against the respondent corporation and two individuals who were guarantors of the liabilities of the respondent corporation, claiming a liquidated sum of $97,322.81.

The claim related to the occupation by the respondent of certain commercial premises owned by the appellant. The circumstances of that occupation will be referred to in more detail later.

In this appeal the appellant seeks to maintain its unsuccessful claim against the respondent corporation, but does not pursue its claim against the two individuals who were also named as respondent parties to the appeal. In those circumstances those two individuals may be ignored for the purposes of this judgment, and the corporation will be referred to as the respondent.