Palermo Seafoods Pty Ltd v Lunapas Pty Ltd [2014] NSWSC 792

Supreme Court New South Wales

Medium Neutral Citation: Palermo Seafoods Pty Ltd v Lunapas Pty Ltd [2014] NSWSC 792 Hearing dates: 20 May 2014, 21 May 2014 Decision date: 16 June 2014 Jurisdiction: Equity Division Before: Young AJA Decision: Stood over for further submissions. Catchwords: LEASES - whether tenant had an option to renew existing lease - whether option to renew duly exercised - whether tenant's failure to pay rent prevented it from exercising option to renew where landlord failed to issue notice under s 133E Conveyancing Act 1919 - whether renewal of lease pursuant to an option to renew created a new lease - whether obligations under former leases extinguished - whether tenant entitled to diminution of rent for diminution of usability of premises - whether tenant entitled to recoupment of costs of repair to premises - whether obligation to maintain or repair certain parts of leased premises obligation of tenant or landlord. ESTOPPEL BY CONVENTION - whether landlord estopped from denying that option was duly exercised. EQUITABLE SET-OFF - whether equitable set-off available as defence to common law claim for rent. Legislation Cited: Civil Procedure Act 2005 (NSW), s 21, s 56-59 Conveyancing Act 1919 (NSW), s 127, s 133E Real Property Act 1900 (NSW), s 53 Retail Leases Act 1994, s16, s 36, 36(1)(b) Law Reform (Law and Equity) Act 1972 (NSW), s5 Supreme Court Act 1970 (NSW) Supreme Court of Judicature (Consolidation) Act 1925 (UK), s 38 Cases Cited: Aries Tanker Corporation v Total Transport Ltd [1977] 1 WLR 185 Asco Developments Ltd v Gordon (1978) 248 EG 683; [1978] 2 EGLR 41 Batiste v Lenin (2002) 10 BPR 19441 Bay Marine Pty Ltd v Clayton Properties Pty Ltd (1984) 9 ACLR 780 Bayview Quarries Pty Ltd v Castle Development Pty Ltd [1963] VR 445 Beasley v Darcy (1800) 2 Sch&Lef 403 Beech v Ford (1848) 7 Hare 208: 68 ER 85 Bilambil-Terinanora Pty Ltd v Tweed Shire Council [1980] 1 NSWLR 465 British Anzani (Felix Stowe) Ltd v International Marine Management (UK) Ltd [1980] QB 137 Cakirgoz v Crouch (2008) NSWSC 1124 Carrathool Hotel Pty Ltd v Scutti [2005] NSWSC 401 Chan v Cresdon Pty Ltd (1989) 168 CLR 242 Commonwealth v Amann Aviation Pty Ltd [1991] HCA 51; 174 CLR 64 Davis v McConochie (1915) 15 SR (NSW) 510 Dalla Costa v Beydoun (1990) 5 BPR 11379 Friary, Holroyd and Healey's Breweries Ltd v Singleton [1899] 2h 261 Ford v Beech (1848) 11 QB 852; 116 ER 693 Galambos & Son Pty Ltd v McIntyre (1974) 5 ACTR 10 Gardner v Blaxill [1960] 2 All ER 457 Griffin v Pillet [1926] 1 KB 17 Hart v Rogers [1916] 1 KB 646 Hewitt v Rowlands (1924) 93LJKB 1080: [1924] All ER Rep 344 Joseph v Mason (1912) 12 SR (NSW) 249 Kemp v Lumeah Inverstments Pty Ltd (1983) 3 BPR 9203 Lahoud v Lahoud [2012] NSWCA 401 Lee v Ferno Holding Pty Ltd (1993) 33 NSWLR 404 Lee-Parker v Izzet [1971] 1 WLR 1688 Masterton Lincensing Trust v Finco [1957] NZLR 1137 McDonnell & East Ltd v McGregor [1936] HCA 28; 56 CLR 50 Metford Industries Ltd, Ex parte; Re Hall, Commissioner for Railways (NSW) [1962] NSWR 1228 Nicholson v Smith (1882) 22 Ch D 640 Proudfeet v Hart (1890) 25 QBD 42 Rawson v Samuel (1841) Cr&Ph 161; 41 ER 451 Sleafer v Lambeth MBC [1960] 1 QB 43 Trustees Executors and Agency Co Ltd v Peters [1960] HCA 16;102 CLR 537 United Scientific Holdings Ltd v Burnley BC [1978] AC 904 Texts Cited: Glanville Williams, Joint obligations: a treatise on joint and joint and several liability in contract, quasi-contract and trusts in England, Ireland and the common-law Dominions (Butterworths, 1949) Butterworth's Annotated Conveyancing and Real Property Legislation, 2012-2013 (Butterworths, 2012) Rory Derham, Derham on the law of set-off (4th ed., Oxford University Press, 2010) P. Meagher, J. D. Heydon, M. J. Leeming, Meagher, Gummow & Lehane's, Equity: Doctrines & Remedies (4th ed., Butterworths 2002) Category: Principal judgment Parties: Palermo Seafoods Pty Ltd (plaintiff) Lunapas Pty Ltd (first defendant) Luciano Menniti (second defendant) Representation: Counsel: Mr Jean Jacques Loofs (plaintiff) Ms Le-Ann Walsh Mr Brad Wright (first and second defendant) Solicitors: Sambrook Grant Lawyers (plaintiff) Ardor Legal (first and second defendants) File Number(s): 2013/206954 Publication restriction: None