6. The Offsetting Claim arises out of representations made by Mr Gumina, in his capacity as director of the respondent, purportedly for and on behalf of the applicant, to Mr Gumina's accountant, Mr John Osborne, for the purpose of communication thereof by Mr Osborne to the representative of the Lessors, Mr Paul Bafile, which have caused losses to the applicant. These representations made by Mr Gumina were to the effect that the respondent and applicant, as lessees of the Premises, agreed a compromise to reinstate the Lease following purported service of a notice of default by the lessors, but without the two 5-year options which were in the original Lease. These representations were made without the authority of the applicant. As a result of these representations, the applicant and Lessors have been in dispute and engaged in successive proceedings in the Supreme Court of Western Australia which have caused the applicant losses and which, but for the representations, would not have eventuated. In the first of those proceedings, the Lessors relied on Mr Osborne, on behalf of the applicant, having agreed to compromise issues under the notice of default on the basis of reinstatement of the Lease without the two 5-year options. Those proceedings (CIV 1034 of 1999) were settled, but at substantial costs to the applicant and on terms which have now given rise to further disputes and further proceedings now pending in the Supreme Court (CIV 2346 of 1999) in which the applicant has had to obtain an interlocutory injunction to restrain termination of the lease."