Callaghan v Merivale CBD Pty Limited [2005] NSWSC 985

Reported Decision : (2006) NSW ConvR 56-155

New South Wales Supreme Court

CITATION : Callaghan v Merivale CBD Pty Limited [2005] NSWSC 985

HEARING DATE(S) : 08/08/05-11/08/05

JUDGMENT DATE : 20 October 2005

JUDGMENT OF : Burchett AJ

DECISION : Verdict for plaintiff in the action and for the cross-claimant on cross-claim.

CATCHWORDS : Lease - rent review clauses - whether time of essence in any respect - payment of rent demanded which substantially exceeded rent due - mistake as to legal obligation - mistake induced by lessor's representation about obligation - inference from intention to induce belief that belief was induced - meaning of "anniversary" - construction contrary to ordinary meaning of word to avoid absurdity - power of court to mould language - principles of interpretation - rule as to construction of rent review clauses - indications to contrary of prima facie rule - effect of lenity in one respect and strictness in an other as an indication the strict construction must be adhered to where it is applicable - effect of lessor itself failing to comply with a time requirement - consideration of waiver as estoppel or as election - implied agreement - equitable assignment where assignor ASIC on behalf of defunct company not joined - effect - nature of renewal of a lease - effect of covenant to repair in short form under Schedule 4 of the Conveyancing Act - effect of words "having regard to the condition of the demised premises at the commencement of the lease " - meaning of covenant to replace a worn out item with one "of a like nature and equal value"

Corporations Act 2001 (Cth) LEGISLATION CITED : Conveyancing Act 1919 (NSW)

Gould v Vaggelas (1985) 157 CLR 215 Como Investments Pty Ltd (In Liquidation) v Yenald Nominees Pty Ltd (1997) ATPR 43 Kiriri Cotton Co Ltd v Dewani [1960] AC 192 David Securities Pty Limited v Commonwealth Bank of Australia (1992) 175 CLR 353 Peking Palace Ltd (Tang's Restaurant) v Trizec Construction Limited (1987) 20 BCLR (2d) 161 Duchow v New York State Teamsters Conference Pension and Retirement Fund (1982) 691 F 2d 74 Save Our Suburbs (SOS) NSW Incorporated v Electoral Commissioner of New South Wales (2002) 55 NSWLR 642 Short v F W Hercus Pty Limited (1993) 40 FCR 511 Fitzgerald v Masters (1956) 95 CLR 420 Dockside Holdings Pty Ltd v Rakio Pty Ltd (2001) 79 SASR 374 Westpac Banking Corporation v Tanzone Pty Ltd (2000) 9 BPR 17521 Mannai Investment Co Ltd v Eagle Star Life Assurance Co Ltd [1997] AC 749 Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 WLR 896 United Scientific Holdings Ltd v Burnley Borough Council [1978] AC 904 Gollin & Company Limited v Karenlee Nominees Proprietary Limited (1983) 153 CLR 455 G R Mailman & Associates Pty Ltd v Wormald (Aust) Pty Ltd (1991) 24 NSWLR 80 Mecca Leisure Ltd v Renown Investments (Holdings) Ltd (1984) 49 P&CR 12 Mobil Oil New Zealand Ltd v Mandeno [1995] 3 NZLR 114 W & R Jack Ltd v Fifield [2000] 3 NZLR 129 CASES CITED : Perri v Coolangatta Investments Proprietary Limited (1982) 149 CLR 537 Charles Rickards Ld v Oppenheim [1950] 1 KB 616 Craine v The Colonial Mutual Fire Insurance Company Limited (1926) 28 CLR 305 George v Roach (1942) 67 CLR 253 Deaves v CML Fire and General Insurance Company Limited (1979) 143 CLR 24 Johnson v Agnew [1980] AC 367 Empirnall Holdings Pty Ltd v Machon Paull Partners Pty Ltd (1988) 14 NSWLR 523 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 33 Bank Street Nominees Pty Ltd v Citipower Pty (1997) BC 9702794 Solle v Butcher [1950] 1 KB 671 David Securities Pty Limited v Commonwealth Bank of Australia (1992) 175 CLR 353 Commissioner of State Revenue (Victoria) v Royal Insurance Australia Limited (1994) 182 CLR 51 Roxborough v Rothmans of Pall Mall Australia Limited (2001) 208 CLR 516 British American Tobacco Australia Ltd v The State of Western Australia (2003) 217 CLR 30 Weddell v Pearce [1988] 1 Ch 26 Jennings v Credit Corp Australia Pty Ltd (2000) 48 NSWLR 709 Gerraty v McGavin (1914) 18 CLR 152 Lurcott v Wakely & Wheeler [1911] 1 KB 905 Commonwealth of Australia v Amann Aviation Pty Limited (1991) 174 CLR 64 Amann Aviation Pty Limited v Commonwealth of Australia (1990) 22 FCR 527