Starkey v Mitchforce Pty Ltd [2000] NSWIRComm 216

Industrial Relations Commission of New South Wales in Court Session

CITATION : Starkey v Mitchforce Pty Ltd [2000] NSWIRComm 216 FIRST APPLICANT Keith Abner Sidney Starkey

PARTIES : SECOND APPLICANT Dawn Nell Starkey

RESPONDENT Mitchforce Pty Limited FILE NUMBER: IRC 3326 of 1999 CORAM: Hungerford J CATCHWORDS : Unfair contract - Lease of hotel/tavern - Assignment of original lease on same terms - Jurisdiction - Whether a contract whereby work is performed in an industry - Level of rent and its annual increase under the lease - Relevance of movements in Consumer Price Index - Arrangement to defer rental payments - Claim for payment of deferred rent - Adverse economic conditions - Exercise of option for a further lease term - Whether failure to pay deferred rent a breach of lease to justify refusal to grant option - Waiver of breach - Whether contract unfair - Claim for avoidance or variation of lease - Claim for payment of money plus interest and costs - Application for declarations of right - Open offer of settlement - Unfairness found - Exercise of discretion - Whether a calculated business risk - Contract varied to substitute new rental regime - Declarations made as to valid exercise of option and current market value of rent - Order for payment of money in connection with contract as varied - Interest disallowed - Costs. Conciliation and Arbitration Act 1904 (Cth) s 140(1)(c) (repealed) LEGISLATION CITED : Industrial Arbitration Act 1940 s 88F (repealed) Industrial Relations Act 1991 s 275 (repealed) Industrial Relations Act 1996 s 105 s 106 s 154 A & M Thompson Pty Ltd v Total Australia Ltd [1980] 2 NSWLR 1, [1980] AR (NSW) 399 Australian Institute of Music Ltd v LM Investment Management Pty Ltd [2000] NSWIRComm 201 Autobake Pty Ltd v Budd [1986] 19 IR 18 Booth v Kritikos Developments Pty Ltd (1995) 59 IR 298 BP Refinery (Westernport) Pty Ltd v President, Councillors and Ratepayers of Shire of Hasting [1978] 52 ALJR 20 Caltex Oil (Australia) Pty Ltd v Feenan [1981] 1 NSWLR 169 Davies v General Transport Development Pty Ltd [1967] AR (NSW) 371 Erven Warnink Beloten Vennootschap v J Townend & Sons (Hull) Ltd [1979] AC 731 Ford v SAS Trustee Corporation [2000] NSWIRComm 92 CASES CITED : Harris v Hammon (No 2) (1995) 59 IR 232 Jennings v Auto Plaza Ltd [1993] 46 IR 413 Kostakis v New World Oil & Developments Pty Ltd (unreported, Schmidt J, CT96/1157, 25 July 1997) Majik Markets Pty Ltd v Brake and Service Centre Drummoyne Pty Ltd (1991) 28 NSWLR 443, [1991] 39 IR 169 Municipal Officers' Association of Australia v Lancaster [1981] 54 FLR 129 Nagle (t/as WD & JL Nagle & Sons) v Tilburg [1993] 51 IR 8 Pay v Canterbury-Bankstown Rugby League Club Ltd (1995) 72 IR 358 Port Macquarie Golf Club Ltd v Stead (1996) 64 IR 53 Production Spray Painting & Panel Beating Pty Ltd v Newnham (1991) 27 NSWLR 644, [1991] 37 IR 46 Stevenson v Barham (1977) 136 CLR 190 HEARING DATES: 05/22/2000; 05/23/2000; 05/24/2000; 06/22/2000; 09/13/2000 DATE OF JUDGMENT: 11/03/2000