[2020] NSWCATCD 21
General information, not legal advice.
NCAT Consumer and Commercial
2019-07-29
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Applications and Jurisdiction
Evidence
Issues for determination:
Did Maparily breach its obligations under the lease pursuant to clause 12.1 to make sure certain works were undertaken at the commencement of the lease?
Boumatic Dairy Plant 1. Provide evidence that all rubber items on the milk line are less than 12 months old - Mr Farr says that the rubber items were in need of replacement. The outgoing report states that the rubber ware was "clean and in good condition". This is not evidence that all rubber items were less than 12 months old. Maparily has failed to comply with this provision of the lease. 2. Repair bushes in end of detachor swing arm, confirm that all components that form part of the removed 28 bales are now located in the old dairy-Mr Farr makes no comment. The outgoing report states that the bushes were repaired and the parts were present. I accept that they were.
Rapid exit stalling system 1. Repair air leak on right hand side front cylinder - the outgoing report states that it was repaired. Mr Farr says that on the day the lease commenced he observed a leak. I am satisfied that the repair had not been carried out. 2. Strip and replace O rings - there is no evidence that the O-rings were stripped out and replaced. No mention of the O-rings is made by Mr Thompson. I am not satisfied that this work was carried out.
Bulk milk tank 1. Replace missing top compressor - Mr Thompson states that "blue compressor present - date 15/1/15 written on it". I accept Mr Farr's statement that it was however not operational, and that the other half of the system broke down on the second day of the lease.
Effluent pump 1. Empty solids trap, service motor/pump, replace float switch - it appears that these items were attended to, but Mr Farr gives evidence that the system was not operational. I accept that evidence.
Feed system 1. Replace safety guards, install new belt, service and obtain a condition report - Mr Thompson notes that the guards were replaced but he could not determine if the new belt had been installed. He noted that he had been advised that the system was worn out and a condition report was "a Sydney person job". Mr Farr agrees. Maparily has complied in part only with this provision.
Air compressor 1. Service and obtain a condition report -Mr Thompson says that the oil was changed and the filter cleaned but a condition report is a "Sydney person job". Maparily has complied in part only with this provision.
Flood wash system 1. Replace on/off lever arm - Mr Farr gives evidence that at the commencement of the lease the arm was snapped in half. It is not referred to in the outgoing report. I find that it was not replaced as required.
Irrigation system - 1. Replace 3 sprays (pivot 1 and 8), replace gasket on 4th tower of pivot 8, service pressure reduction valve pilots on pivots 1 and 3 valves to be adjusted repaired or replaced as appropriate, copy of service report will evidence that pivots are operational (excepting #7 and #8) cap main outlets of removed pivots - Mr Thompson says that 3 sprays were replaced, the gasket was replaced and the valve in pivot 1 was replaced. Where pivots were removed water was sealed off. I accept that these matters were attended to but there is no evidence of a service report, and I can make no finding as to whether the pivots were operational. Maparily has complied in part only with this provision.
Did Maparily breach its obligations under the lease pursuant to clause 14.1 (a) to ensure irrigation pivots 7 and 8 were working properly within 60 days of the commencement of the lease?
Did Maparily breach its obligations under the lease pursuant to clause 12.2 (a) to repair replace and restore the feed system as per the report of Anthony Neale dated 20 June 2014 within 6 - 12 months?
Did Maparily breach its obligations under the lease pursuant to clause 12.2 (b) to restore an additional 12 bails to the dairy after 12 months?
Did Palmdale suffer loss and damage as a consequence of Maparily's breaches of the lease?
What is the status of the so called admission by Maparily in the sum of $113,563.58?
What compensation should be ordered as a consequence of Maparily's breaches of the lease?
Claims under the Act - what does the law provide?
Is Palmdale entitled to compensation for carrying out works contemplated by the Property Management Plan?
What evidence is there that Palmdale carried out any other improvements on the farm with the consent of the owner? (see the Act s 6)
If so, is an amount of compensation fixed by the agreement? Should the owner pay that amount or is the agreed amount unfair? If no amount is fixed, what is the fair compensation payable?
Did Palmdale carry out any improvements on the farm without the consent of the owner? (see the Act s 7). If so, is the improvement mentioned in Schedule 1 or prescribed by the Regulations or has the Tribunal determined it to be suitable and desirable in the circumstances?
If so is compensation payable? (see s 7 (2) and (3).
Conclusion
Should time be extended for the bringing of the claim?
What rent was owing to the end of the lease (1 February 2019)
Does the Tribunal have jurisdiction to determine the mesne profits claim? If so, is Maparily entitled to mesne profits? If so, at what rate and for what period?
Does the Tribunal have jurisdiction to determine the interest claim? If so, is Maparily entitled to interest on these amounts?
Did Palmdale's failure to give vacant possession on 2 February 2019 delay exchange and settlement of the contract for sale of the property? If so, what loss or damage was suffered by Maparily?
Did Palmdale breach the agreement by failing to undertake work required by the Property Management Plan? If so, did Maparily suffer loss and damage?
Is Maparily entitled to interest?
Amounts owing
COSTS
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. Registrar DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 29 March 2022
Farr t/as Palmdale Holsteins
Maparily