[2026] NSWCATAP 29
General information, not legal advice.
NCAT Appeal Panel
2026-02-05
K Ransome, Principal MemberH Dixon SC, Senior Member
Original judgment source is linked above.
Australian Securities and Investment Commission v Kobelt [2019] HCA 18
Barnes v Barot [2023] NSWCATAP 199
Brahmbhatt v Osorio [2023] NSWCATAP 188
Collins v Urban [2014] NSWCATAP 17
Darzi Group Pty Ltd v Nolde Pty Ltd [2021] NSWSC 774
Donohoe v Albulario [2025] NSWSC 9
Ellis v Wallsend District Hospital (1989) 17 NSWLR 553
GTK v NSW Treasury [2025] NSWCATAP 174
Jamaican Coffee Kitchen Pty Ltd v M20 Pty Ltd [2022] NSWCATAP 203
New South Wales Land and Housing Corporation v Orr [2019] NSWCA 231
Nu-Stone Building Pty Ltd v McInerney [2023] NSWSC 940
PT Ltd v Spuds Surf Chatswood Pty Ltd [2013] NSWCA 446
Re Minister for Immigration and Multicultural Affairs; Ex parte Lam
Ryan v BKB Motor Vehicle Repairs Pty Ltd [2017] NSWCATAP 39
Sabouni v Revelop Building and Developments Pty Ltd [2021] NSWSC 31
Sneakerboy Pty Ltd Georges Properties (No 2) [2020] NSWSC 1141
Tuon v Popo Big Bowl Noodles Pty Ltd; Popo Big Bowl Noodles Pty Ltd v Tuon [2022] NSWCATCD 172
Unique Commercial Group Pty Ltd v Cusumano [2024] NSWCATAP 204
Wollondilly Shire Council v Styles [2024] NSWCATAP 104
(3A) An impacted lessee must give the lessor the following in respect of the impacted lease -
(a) a statement to the effect that the lessee is an impacted lessee,
(b) evidence that the lessee is an impacted lessee.
(3B) If the impacted lessee does not comply with subclause (3A), the lessor is taken to have complied with this clause.
I wish to state my appreciation of the rental assistance being provided to me as a consequence of Covid-19. Although trade has improved since the April lows, it still remains below that in February/early March.
The issue as to why I am falling behind on my lease payments relates to the circumstances preceding covid-19. As I indicated in my letter (April 6, 2020), occupancy costs to that date were 23% of sales. In my situation, the assistance being provided via the proportional reduction in rent to sales, does not offer the same degree of relief as it does for other retailers. In my circumstance, each dollar in lost sales due to covid-19 was already being used to cover operating expenses. The business never had the opportunity (to) get established, nor the luxury of being profitable going into the event.
It is my view that the current business is much better than the previous, and I am confident that a base is being established for future growth. The timing of the virus outbreak has just been unfortunate.
Perhaps we could meet and have further discussions. Otherwise let me know what you are prepared to do.
I am terribly upset with the manner and the substance in which this matter has arisen and been managed.
I have made every effort to co-operate, including sharing with you the evidence in support of my claim. The evidence is clearly contrary to your statements.
Since it is now obvious that you are not interested in facts, reason or observing my legal rights, I am resigned to this matter becoming a legal dispute.
I await your termination letter and final date for me to vacate the premise.
(1) whether the Appellant was entitled to damages for unconscionable conduct, misleading and deceptive conduct, or breaches of the COVID- 19 Regulations, or otherwise was estopped from claiming by way of rent arrears, and therefore that the Lessor must refund as an "overpaid" amount, $43,057.96 (referred to as the Damages Claim);
(2) whether the Appellant was entitled to damages resulting from the termination of the Lease (referred to as the Termination of Lease Claim); and
(3) whether the Appellant was entitled to damages for an improperly applied rental review (referred to as the Rent Review Claim).
(a) In response to the COVID-19 pandemic, the Lessor sought information from tenants of the Shopping Centre, including the Appellant, to determine rental relief,
(b) The Appellant did not respond to the Lessor's general inquiry,
(c) In the absence of the Lessor being provided with other information pertinent to additional rental relief such as a lessee's JobSaver Payment status and a lessee's business turnover, the Lessor provided some rental relief to the Appellant in the form of a flat rent reduction of 50% (consistent with the Code of Conduct),
(d) The Appellant did not commence negotiations with the Lessor about rental relief and it did not seek further assistance beyond the relief already provided to it,
(e) There was no deliberate act on the part of the Lessor to not issue invoices for rent, as alleged by the Appellant and invoices in fact were issued,
(f) At no time, did the Lessor confirm to the Appellant that it would be providing rental relief in the form of waiving payment completely of its invoices,
(g) All rental relief provided to the Appellant was in the form of reductions to invoices, not a waiver of the whole invoice,
(h) Mr Turski's written and oral evidence, both generally and in this context was reliable and could be accepted.
(a) a lessee can demonstrate that there is an impacted lease at the time;
(b) prescribed action is taken during the prescribed period; and
(c) a request to renegotiate had been made by a lessee and the lessor had failed to engage or renegotiate in response to that request.
(1) The Appellant made no attempt to remedy the breach prior to the expiry of the second breach notice and in an email on 7 March 2023 invited the Lessor to terminate the lease. The Appellant failed to mitigate its own loss by remedying the breach prior to termination and instead, only remedied the breach after termination when it paid the arrears.
(2) There was no evidence of economic loss. The Appellant had provided no evidence, other than an estimate by Mr Lay, of potential lost sales based on his own calculations with no independent evidence to substantiate the amount claimed. The amount claimed for lost stock was claimed in circumstances where the Lessor had invited the Appellant to collect perishable goods and where there was no evidence that the Appellant actually paid the costs claimed for the perishable goods.
(3) Guided by the principles as summarised by Black J in Sabouni v Revelop Building and Developments Pty Ltd (2021) NSWSC 31 at [42], the Tribunal found that the Appellant, having the burden to discharge, had not proved its case and in the absence of evidence, the Tribunal would not speculate as to an amount of damage, where precise evidence of the damage could have been adduced but was not.
(4) There was no legal basis under the Retail Leases Act for the Appellant's out-of-pocket expenses for solicitor's fees and locksmith charges as the Lessor's termination and re-entry of the Premises in March 2023 was not wrongful, in circumstances where the Appellant was duly issued a breach notice for rent arrears, which it failed to remedy.
(1) Absent leave to appeal, the question of law is the subject matter of the appeal. The question of law should be articulated with precision.
(2) A question of law means a pure question of law.
(3) A "pure question of law" does not depend on facts not found.
(4) A mixed question of fact and law is not a question of law. An appeal is "on" any question of law: s 80(2) of the NCAT Act.
(5) The question of law must not be hypothetical or arid.
(6) An appeal is against orders and not reasons. Therefore, the question of law must be capable of affecting the orders the subject of the appeal.
.....the appellant may have suffered a substantial miscarriage of justice because:
(a) the decision of the Tribunal under appeal was not fair and equitable, or
(b) the decision of the Tribunal under appeal was against the weight of evidence, or
(c) significant new evidence has arisen (being evidence that was not reasonably available at the time the proceedings under appeal were being dealt with).
(a) issues of principle;
(b) questions of public importance or matters of administration or policy which might have general application; or
(c) an injustice which is reasonably clear, in the sense of going beyond merely what is arguable, or an error that is plain and readily apparent which is central to the Tribunal's decision and not merely peripheral, so that it would be unjust to allow the finding to stand;
(d) a factual error that was unreasonably arrived at and clearly mistaken; or
(e) the Tribunal having gone about the fact finding process in such an unorthodox manner or in such a way that it was likely to produce an unfair result so that it would be in the interests of justice for it to be reviewed.
(1) The Tribunal erred in law by failing to provide adequate reasons for its conclusions that:
(a) the Appellant had failed to give the Lessor the information required by the COVID-19 Regulations to demonstrate it was an impacted lessee; and
(b) the Appellant had not requested the Lessor to renegotiate in good faith the rent payable under the lease.
(2) The Tribunal erred in law by failing to afford the Appellant procedural fairness when it accepted a submission made by the Lessor that the Appellant had not given the impacted lessee information to the Lessor when it was not put to Mr Lay in cross-examination that his evidence that he had done so should be disbelieved or ignored.
(3) The Tribunal made errors of fact when it found that the Appellant had not provided information that it was an impacted lessee and had not requested a renegotiation of the lease. The Appellant seeks leave to appeal on the basis that the decision was not fair and equitable and was against the weight of the evidence.
(4) The Tribunal erred in law by failing to consider the Appellant's submission that the breach notice issued by the Lessor on 14 February 2023 was not a valid breach notice issued in accordance with s 129 of the Conveyancing Act 1919 (NSW).
(5) The Tribunal erred in law in failing to consider the Appellant's unchallenged evidence of damages it sustained as a result of the unlawful termination of the lease by the Lessor, or alternatively by failing to give reasons why that evidence should not be accepted.
(1) the Appellant was not an impacted lessee within the meaning of the COVID-19 Regulations; and
(2) the Appellant had not sought to renegotiate the terms of the lease.
(a) the findings of fact made and the material or evidence relied upon to make such findings;
(b) the Tribunal's understanding of the applicable law; and
(c) the reasoning that lead the Tribunal to the conclusions that it made.
While there is a letter from Kamper Chartered Accountants bearing date 28 May 2020 (Exhibit 1 at p 164), the Lessor led unchallenged evidence, which I accept, that the accountants' letter was never received by it from the Lessee - see Mr Turski's Affidavit at [29] - [30] (Exhibit 1, p 248). Moreover, the Lessee led no evidence that the accountants' letter was provided to the Lessor.
The NSW Court of Appeal in New South Wales Land and Housing Corporation v Orr [2019] NSWCA 231 (per Bell P) helpfully set out the principles relevant to adequacy of reasons at [66] - [77]. They are summarised as follows:
(1) The function of the appeal court is to determine not the optimal level of detail required in reasons for a decision but rather the minimum acceptable standard.
(2) The quantity (or detail) of reasons, necessary for those reasons to be adequate may vary both with the nature of the decision maker, i.e. whether or not it is a court or tribunal, and, if the latter, possibly the type of tribunal, and the nature of the question being decided.
(3) As to the quality of reasons, it is generally accepted that the sheer volume of work undertaken by tribunals is such that a perhaps more relaxed standard of review of reasons is appropriate than may be the case when an appellate court is hearing an appeal from another court.
(4) Even in the less formal setting of a tribunal there are certain minimum characteristics that a Tribunal's reasons must possess. These are supplied, in relation to the Tribunal, by s 62(3) of the NCAT Act which, requires there to be set out in reasons (when requested by a party):
(a) the findings on material questions of fact, referring to the evidence or other material on which those findings were based,
(b) the Tribunal's understanding of the applicable law, and
(c) the reasoning processes that lead the Tribunal to the conclusions it made.
(5) At least a basic explanation of the fundamental reasons which led the Tribunal to its conclusion is necessary.
(6) It is not necessary for a judge to detail each factor which he or she has found to be relevant or irrelevant. Nor is a judge required to make an explicit finding on each disputed piece of evidence. It will be sufficient if the inference as to what is found is appropriately clear.
(7) Reasons need not be elaborate.
(8) Expression of conclusions in a certain sequence does not indicate a failure to consider the evidence as a whole.
(9) The court should not read passages from the reasons for decision in isolation from others to which they may be related.
(10) The reasons must be read fairly and as a whole.
(11) The reasons recorded ought not to be inspected with a fine tooth-comb attuned to identifying error.
(12) There should be a degree of tolerance for looseness in the language of the Tribunal, unhappy phrasing of the Tribunal's thoughts or verbal slips.
Materially, other than Mr Lay's assertions, the Lessee could not identify any part(s) of those witnesses' oral evidence to substantiate the underlying submission that I should prefer Mr Lay's evidence to the evidence of the Lessor's witnesses. I find that the evidence of the Lessor's witnesses is supported, objectively, by contemporaneous documents and by the circumstances for the parties' dispute, as apparent from the written evidence of both parties in Exhibit 1.
(1) A letter dated 6 April 2020 sent by Mr Lay to Mr Turski in response to an email from Mr Turski on 31 March 2020 advising of the decision to unilaterally halve the rent payable. That letter noted that the newly established business was yet to trade profitably; a number of matters, including the outbreak of COVID-19 had affected weekly takings; and, a reduction of 50% would normally be welcome relief but if the business experiences income of $2,000-$2,500 a week, surviving would require full rental relief. The letter concluded that, as a tenant in the current circumstances, Bluestream "is forced to seek meaningful financial assistance" from the centre owners.
(2) An email from Mr Lay to Mr Turski on 25 November 2020 in which Mr Lay stated that the reason he was behind in his rent related to circumstances that preceded COVID-19. He again noted that the business did not have an opportunity to get established or be profitable and that the assistance provided did not offer the same degree of relief to him as it did to other retailers. Mr Lay concluded: "Perhaps we could meet and have further discussions. Otherwise, let me know what you are prepared to do".
(3) An email from Mr Lay to Mark Perich (from the Lessor) on 21 January 2021 in which Mr Lay noted that his business was progressing well although sales had not recovered to pre-COVID levels. He noted that the rental relief provided by the Lessor had been welcome. Mr Lay then stated that, whilst determining the appropriate quantum and duration of assistance are difficult issues, or how the pandemic's costs could be fairly shared, the Lessor's recognition of the difficulties was appreciated. He then said: "My thoughts are that should there be constraints as to what rental assistance can be afforded, then perhaps assistance of a different nature may also be considered?" He concluded that he was interested in purchasing land in the shopping centre.
(4) An email to Mr Liolios from Mr Lay on 6 March 2023 in response to inquiries about unpaid rent in which Mr Lay stated that, if the Lessor remained insistent that the invoices he claimed were not issued required payment, "then I am forced to complain that the assistance provided during COVID was severely inadequate".
(5) Mr Lay's statement in his statement prepared for the proceedings that during the Covid period, he required the Lessor to provide rental assistance for his business (at [16]).
I need you to propose a payment arrangement for consideration by the Board. The Leasing code of conduct was very clear that tenants must meet their obligations under the lease to continue to receive rental rebates. We have been applying these rebates to your rental since April, but you have not been making any payments towards the arrears.
(a) it claimed arrears incurred during prescribed periods, which the Lessor was barred by the COVID-19 Regulations from claiming (see Ground 3 above); and
(b) it failed to provide full credit for payments made by the Appellant, as set out in the Lessor's own documentary evidence.
(1) By its letter of 7 March 2023 in which the Appellant stated, "I await your termination letter and final date for me to vacate the premises", the Appellant acquiesced to the breach. Any loss that arose was by the Appellant's own conduct and the Appellant failed to mitigate its loss by remedying the breach.
(2) There was no evidence of the economic loss said to have been suffered by the Appellant. At best, the Appellant's evidence was an estimate of potential lost sales derived from its own calculations, but with no independent evidence to substantiate the amount claimed. The Appellant claimed loss of stock despite the Lessor inviting the Appellant to collect any perishable goods and there was no evidence that the Appellant actually paid the costs claimed for the perishable goods.
(3) Applying the principles summarised by Black J in Sabouni v Revelop Building and Developments Pty Ltd [2021] NSWSC 31 at [42] the Appellant, bearing the burden, had not proved its case and in the absence of evidence, the Tribunal would not speculate as to an amount of damage, where precise evidence of the damage, that is, economic loss, could have been adduced and was not.
(4) There was no legal basis to relief under the Retail Leases Act in circumstances where the Lessor's termination of the lease and re-entry of the premises was not wrongful.
(3) The Appellant is to file and serve submissions on the costs of the appeal within 14 days.
(4) Within 14 days thereafter, the Respondent is to file and serve submissions concerning costs of the appeal in opposition to the Appellant's submissions.
(5) The submissions on costs should address whether the Tribunal may make an order dispensing with a further hearing on costs of the appeal and whether the Appeal Panel may determine costs of the appeal on the papers.
I hereby certify that this is a true and accurate record of the reasons for decision of the Civil and Administrative Tribunal of New South Wales.
Bluestream Enterprises Pty Ltd
Perich Property Pty Ltd [2026] NSWCATAP 29;
(1989) 17 NSWLR 553
(2003) 214 CLR 1