Lease Litigation update

Forefeiture of premises under a lease

Dee Vine Group Pty Ltd v Palais Reception Centre Pty Ltd [2019] NSWSC 1462
Supreme Court of New South Wales
This case highlights the importance of seeking consent to an assignment of a lease where the shares in the lessee company are transferred.  In this case the September rent was unpaid and the additional bank guarantee was unpaid.

Leases, subleases and tenancies – relief against forfeiture .  The Defendant, by sub-lease, sub-let the premises to the plaintiff .  The plaintiff made an application against forfeiture of the sub-lease based on ‘non-payment of rent and other alleged non-monetary breaches’.  There were questions about the validity of the ‘Notice of Breach of Covenant’.  The breaches on which plaintiff could rely included non-payment of ‘September rent’, non-provision of ‘Additional Bank Guarantee’, assignment of shares in plaintiff without defendant’s consent,  “special circumstances” – whether Court satisfied to exercise discretion to grant relief against forfeiture – held: relief against forfeiture granted ‘on strict terms’.