[2025] WASC 483
General information, not legal advice.
Supreme Court of WA
2025-11-17
Whitby J
Original judgment source is linked above.
Have the plaintiffs made out a prima facie case?
(1) the rent would be $3,500 per month inclusive of GST and outgoings, payable as before the first day of each month;
(2) terms as to utilities, deposit and insurance;
(3) the initial term would commence from the date of signing a written agreement and would end on 1 November 2025;
(4) the plaintiffs would have an option to extend the lease term for a further 3-year term, after 1 November 2025 (Option to Renew);
(5) the parties would and did execute a basic agreement setting out all of the terms agreed save for the Option to Renew; and
(6) the defendant would prepare a more formal document which would include the Option to Renew, to be signed by the parties.
(1) Mario Petrovski, on behalf of the defendant, sent the second plaintiff an email on 29 October 2022 attaching the Sublease Agreement 'for your records that we will sign together in person', and referred to the premises that 'we are sub-leasing to you for the next three years'[10] - there is no mention of the agreement being a 'rough draft' or there being a 'more detailed agreement' to follow and there is no responsive email from either of the plaintiffs to this email;
(2) the Sublease Agreement does not bear the hallmarks of a 'rough draft' - it is a plainly written document that contains the clause headed 'TERM' which does not include an option to renew the Sublease Agreement;
(3) in my view, it is implausible that the plaintiffs would have signed the Sublease Agreement without inserting an option to renew clause, particularly in light of the first plaintiff's evidence that he would not have signed the Sublease Agreement if the plaintiffs did not have the Option to Renew;
(4) there is no evidence of anything in writing, for example in the form of emails or text messages, which supports the plaintiffs' contention that the defendant agreed to later provide them with a formal written lease or that they were proceeding on the understanding that they had the right to exercise a 3‑year option to renew the Sublease Agreement. The first time the plaintiffs refer in writing to the Option to Renew is by email to the defendant on 15 August 2025.[11] This email was sent after Mario Petrovski had emailed the first plaintiff on 14 June 2025, advising him that the Sublease Agreement was due to expire on 1 November 2025.[12] During that two month period from June to August, the plaintiffs did not respond to the email from Mario Petrovski. If the plaintiffs had in fact agreed with the defendant in October 2022 that a 3‑year option to renew would be included in a formal written lease, it would be unusual for the plaintiffs to not send an email or a text message to the defendant to follow up on the formal lease agreement or to confirm the agreement to the Option to Renew throughout the entire period from October 2022 to August 2025, and especially after receiving the 14 June 2025 email confirming the expiry of the sublease on 1 November 2025; and
(5) throughout July and August 2025, the defendant sent the first plaintiff several text messages of 'property for rent' advertisements - the inference I draw from this evidence is that the plaintiffs and the defendant were operating on the understanding that the sublease would expire on 1 November 2025. The plaintiffs did not respond to those texts at all, let alone assert the existence of the Option to Renew.
(1) the plaintiffs relied on the representations by the defendant about the Option to Renew;
(2) a reasonable person in the position of the defendant is likely to have expected or intended reliance on the representation;
(3) the plaintiffs relied on the representation by proceeding with the leasing arrangements and would not have done so but for such reliance; and
(4) the plaintiffs will be left in a worse position if the promise had not been made in that they would not have proceeded with the arrangements and incurred the capital expenses of $95,000.
Another issue - futility of relief sought by the plaintiffs
(1) a declaration that the Subleasing Agreement includes a term by which the plaintiffs would have an option to extend the sublease term for a further 3-year term at the expiration of the initial 3‑year term; and
(2) orders for specific performance by the defendant of the term referred to above by the execution of an agreement to lease on terms providing for the grant of an option to extend the term of the sublease for a further 3-year term and otherwise on the terms of the Sublease Agreement.
(1) the plaintiffs are no longer in possession of the Bayswater Premises - they seek to reverse, not preserve, the status quo;
(2) the plaintiffs have merely asserted that they will suffer loss and damage if the injunction is not granted - there is no quantification of any loss of profit or business and no independent evidence of the costs of relocating premises;
(3) the defendant intends to use the Bayswater Premises to store cars he has purchased and to conduct refurbishment work. The estimated cost of storing 15 cars at alternative premises is $7,425 per month;[14]
(4) the first plaintiff deposes that 'the directors are not in a financial position to personally borrow additional funds to cover relocation or set up costs',[15] which he estimates to be approximately $50,000. This causes me to doubt whether the plaintiffs have the capacity to pay a sum in the range of the alternative storage costs for the defendant in performance of their undertakings as to damages. The fact that the first plaintiff owns a property does not persuade me to take a different view, given that property is owned jointly with another person and has a mortgage registered against the title;[16] and
(5) the plaintiffs have, in my view, unjustifiably delayed commencing these proceedings and filing the chamber summons, having been aware of the defendant's intention to take possession of the Bayswater Premises pursuant to the Sublease Agreement since at least 25 June 2025 and not taking any action until after the Sublease Agreement had ended.
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] Mineralogy Pty Ltd v Sino Iron Pty Ltd [2016] WASCA 105 [87].
[2] Mineralogy Pty Ltd v Sino Iron Pty Ltd [87].
[3] Mineralogy Pty Ltd v Sino Iron Pty Ltd [87].
[4] Sino Iron Pty Ltd v Mineralogy Pty Ltd [No 2] [2017] WASCA 76 [130] - [131].
[5] Twinside Pty Ltd v Venetian Nominees Pty Ltd [2008] WASC 110 [7] - [12].
[6] Codelfa Construction Pty Ltd v State Rail Authority (NSW) (1982) 149 CLR 337.
[7] Lighting By Design (Aust) Pty Ltd v Cannington Nominees Pty Ltd [2008] WASCA 23; (2008) 35 WAR 520 [73] (Buss JA & Le Miere AJA) (Lighting By Design).
[8] Equuscorp Pty Ltd v Glengallen Investments Pty Ltd [2004] HCA 55; (2004) 218 CLR 471.
[9] S & K Investments Pty Ltd v Cerini [2016] WASC 233.
[10] Mario Petrovski 11 November 2025 Affidavit, Annexure 'MP-2'.
[11] Mario Petrovski 11 November 2025 Affidavit, Annexure 'MP-6'.
[12] Mario Petrovski 11 November 2025 Affidavit, Annexure 'MP-7'.
[13] Warwick Entertainment Centre Pty Ltd v Alpine Holdings Pty Ltd [2005] WASCA 174; (2005) 224 ALR 134.
[14] Mario Petrovski 11 November 2025 Affidavit [48] - [51], Annexure 'MP-13'.
[15] Hashimi 10 November 2025 Affidavit [22].
[16] Hashimi 10 November 2025 Affidavit [26].
(1982) 149 CLR 337
(2005) 224 ALR 134
(2008) 35 WAR 520
(2004) 218 CLR 471