Leasing and Property Newsletter – June 2020
In this edition our team report on the following topics:
- Can a lessee be compelled to perform?
- Is a lessor required to disclose anticipated disturbance and potential building works to a lessee?
- Negotiate in Good Faith.
Sentinel Countrywide Retail Ltd v PC Emerald (QLD) Pty Ltd  QSC 348Under new regulations, tenants may be excused from opening for trade during the COVID-19 pandemic. When the pandemic is over, can a lessee be compelled to re-open?In a recent Queensland case, a landlord sought from the Court a mandatory injunction that would require the lessee to keep its shop open for business during the landlord’s shopping centre “trading hours” as provided for in the lease. The Court had to consider the settled practice of not granting mandatory injunctions which required persons to carry on a business unless there were “exceptional circumstances”.
D’Annunzio v North Sydney Council  NSWCATAP 66 (22 April 2020)
This case looks at when a lessor is required to disclose anticipated disturbance and potential building works to a lessee. It examines misleading and deceptive conduct in a commercial context and provides insight into how the Court applies statutory interpretation towards resolving a dispute.
D’Annunzio v North Sydney Council was an appeal matter heard in the NSW Civil and Administrative Tribunal.
The new COVID-19 leasing Code of Conduct and Regulations require landlords and tenants to negotiate in good faith. One of the overarching principles of the National Code of Conduct is: “Landlords and tenants will negotiate in good faith.”
What is required by an obligation to negotiate in good faith and what would breach that obligation?