Drama Unit Pty Ltd v Fearndale Holdings Pty Ltd (Administrator Appointed) & Anor [2019] NSWCA 312

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Drama Unit Pty Ltd v Fearndale Holdings Pty Ltd (Administrator Appointed) & Anor [2019] NSWCA 312 Hearing dates: 10 September 2019 Date of orders: 17 December 2019 Decision date: 17 December 2019 Before: Meagher JA at [1] Brereton JA [70] Emmett AJA [93] Decision: (1) Appeal allowed in part. (2) Vary the declaration made by order 1 of 4 June 2019 to provide: Declare that on 22 March 2019 the first plaintiff validly terminated the lease with a commencing date 23 March 2017 between it and the defendant for breaches of cl 7.3(4)(b). (3) Set aside the judgment for the first plaintiff against the defendant in the amount of $341,890.72 for rent for the period 25 June 2018 to 15 May 2019. (4) Appellant pay 30% of the respondents' costs of the appeal. Catchwords: LEASES AND TENANCIES – eviction by landlord – suspension of obligation to pay rent – characteristics of eviction – whether common law rule displaced by lease contract – whether covenants other than for rent suspended during eviction

LEASES AND TENANCIES – construction of lease contract – where contract imposed obligations to obtain, maintain, comply with and provide the landlord copies of consents or approvals necessary or appropriate for mining business – time for compliance with obligations – no question of principle

LEASES AND TENANCIES – termination of lease by landlord – termination notices – s 129 Conveyancing Act – whether notices required to specify reasonable time in which to remedy breach Legislation Cited: Conveyancing Act 1919 (NSW), ss 120A, 129 Corporations Act 2001 (Cth), pt 5.3A Mining Act 1992 (NSW) Protection of the Environment Operations Act 1997 (NSW) Real Property Act 1900 (NSW) Cases Cited: Booker Industries Pty Limited v Wilson Parking (Qld) Pty Limited (1982) 149 CLR 600; [1982] HCA 53 C H Bailey Limited v Memorial Enterprises Limited [1974] 1 WLR 728 Commonwealth v Anderson (1960) 105 CLR 303; [1960] HCA 85 David Jones Ltd v Leventhal (1927) 40 CLR 357; [1927] HCA 53 Dawson v Dyer (1833) 5 B & Ad 584; 110 ER 906 Dogan and Another v Morton (1935) 35 SR (NSW) 142 Drama Unit Pty Limited v Fearndale Holdings Pty Limited (Administrator Appointed) [2018] NSWSC 1895 Edge v Boileau (1885) 16 QBD 117 Glebe Administration Board v Tasker [1964] NSWR 1307 Hovan's Hotels Pty Ltd v Cherry (Supreme Court (NSW), Bryson J, 14 March 1994, unrep) Matthey v Curling [1922] 2 AC 180 Morrison v Chadwick (1849) 7 CB 266; 137 ER 107 Neale v Mackenzie (1835) 2 C M & R 84; 150 ER 36 Nina's Bar Bistro Pty Ltd v MBE Corp (Sydney) Ltd [1984] 3 NSWLR 613 Orleans Investments Pty Ltd v MindShare Communications Ltd (2009) 254 ALR 81; [2009] NSWCA 40 Progressive Mailing House Pty Ltd v Tabali Pty Ltd (1985) 157 CLR 17; [1985] HCA 14 Salmon v Smith 1 Wms Saund 202; 85 ER 205 Smiley v Townshend [1950] 2 KB 311 Taylor v Webb [1937] 2 KB 283 Todburn Pty Ltd v Taormina International Pty Ltd (1990) 5 BPR 97,333 Udhe v Asche (1887) 8 NSWR 472 United Scientific Holdings Limited v Burnley Borough Council [1978] AC 904 Upton v Townend (1855) 17 CB 30; 139 ER 976 Woodar Investment Development Ltd v Wimpey Construction UK Ltd [1980] 1 WLR 277 Texts Cited: Bridge et al, Megarry & Wade: The Law of Real Property, (9th ed, 2019, Sweet & Maxwell) Coke, The First Part of the Institutes of the Laws of England or; A Commentary Upon Littleton (16th Ed, 1809, Luke Hansard & Sons) Foa's General Law of Landlord and Tenant (8th ed, 1957, Thames Bank Publishing Company) Halsbury's Laws of England, (2nd ed, 1936, Butterworth & Co) Vol XX Halsbury's Laws of England, (5th ed, 2016, Butterworths LexisNexis) Vol 62 Heydon, Heydon on Contract: The General Part (2019, 1st ed, Lawbook Co) Holdsworth, A History of English Law (1st ed, 1925, Methuen & Co) Vol VII Lang, Leases and Tenancies in New South Wales (1976, Law Book Company) Lee and Lewis, Hammond and Davidson's Law of Landlord and Tenant (4th ed, 1953, Butterworths) Wellings, Woodfall's Law of Landlord and Tenant (1978, 28th ed, Law Book Company) Category: Principal judgment Parties: Drama Unit Pty Ltd (Appellant) Fearndale Holdings Pty Ltd (administrator appointed) (First Respondent) Timothy James Cook (in his capacity as administrator of Fearndale Holdings Pty Ltd (administrator appointed) ) (Second Respondent) Representation: Counsel: B W Walker SC and M Sneddon (Appellant) S Golledge (First and Second Respondents)