Alcatel Australia Limited v Scarcella & Ors [2001] NSWCA 401

New South Wales Court of Appeal

CITATION : Alcatel Australia Limited v Scarcella & Ors [2001] NSWCA 401 FILE NUMBER(S) : CA 40218/01 HEARING DATE(S) : 21 September 2001 JUDGMENT DATE : 13 November 2001

Alcatel Australia Limited - Appellant PARTIES : Francesco Scarcella - First Respondent Helen Scarcella - Second Respondent Rocky Scarcella - Third Respondent JUDGMENT OF : Beazley JA at 1; Stein JA at 2; Davies AJA at 82

LOWER COURT JURISDICTION : Supreme Court - Equity Division LOWER COURT EQ 3368/95 FILE NUMBER(S) : LOWER COURT Austin J JUDICIAL OFFICER :

COUNSEL : P M Biscoe QC/S J Motbey - Appellant V R W Gray - Respondents SOLICITORS : Quinn & Quinn - Appellant Henshaws Solicitors - Respondents CATCHWORDS : CONTRACT - LEASE - rent review clause - base rent - valuer to assume a hypothetical market - whether valuer entitled to have regard to real market - whether valuer could conclude there was no market - approach to be taken in construction of rent review clause - CONTRACT - LEASE - claim before referee - whether party entitled to withdraw claim - Anshun estoppel - no final orders - CONTRACT - LEASE - repair covenant - corroded window frames - referee's report - whether reasonably minded owner would repair or replace - exclusion of replacement as an option by referee - whether trial judge correct to exclude aspects of referee's report. - EVIDENCE - credit - preference of referee - expert evidence - D LEGISLATION CITED : Supreme Court Rules Alcatel Australia Limited v Scarcella (1998) 44 NSWLR 349 Basingstoke and Deane Borough Council v Host Group Ltd [1988] 1 WLR 348 British Airways PLC v Heathrow Airport Ltd [1972] 1 EGLR 141 Dennis & Robinson Ltd v Kiossis Establishment (1987) 282 EG 857 CASES CITED: F. R. Evans (Leeds) Ltd v English Electronic Co Ltd (1977) 36 P & CR 185 Graham v The Markets Hotel Pty Ltd (1943) 67 CLR 567 Jeffries v O'Neill (1987) 1 WLR 348 Port of Melbourne Authority v Anshun Pty Limited (1981) 147 CLR 589 Super Pty Ltd v SJP Formwork (Aust) Pty Ltd (1992) 29 NSWLR 549 DECISION : 1) Appeal allowed in part. 2) Order 4 of Austin J's judgment set aside. 3) Declaration that the appellant was not in breach of cl 2(c)(i) of the lease with respect to items 145 and 146 of the Notice of Default be substituted. 4) Each party to bear its own costs of the appeal. 5) Agreed Short Minutes of Order to be filed within 7 days.