[2025] ACTMC 13
General information, not legal advice.
Magistrates' Court of the ACT
2025-06-13
Magistrate Temby
Original judgment source is linked above.
MAGISTRATES COURT OF THE AUSTRALIAN CAPITAL TERRITORY
CIVIL - LEASES - implied terms - guarantor - costs
Court Procedures Rules 2006, rr 1619 and 1720(3)(c), Schedule 2
Arthur McWitton Pty Limited v Perpetual Trustee Co Limited [2005] TT 793 of 2000
Beach Petroleum NL v Jonson (No 2) (1995) 57 FCR 119
BP Refinery (Westernport) Pty Ltd v Shire of Hastings [1977] UKPCHCA 1; (1977) 180 CLR 266
Canvas Graphics Pty Ltd v Kodak (Australasia) Pty Ltd [1998] FCA 23
Jorgensen v Wilson (No 3) [2023] ACTSC 124
Motor Trades Association of Australia Superannuation Fund Pty Ltd v Rickus [2007] FCA 1878
Polleycutt v Taylor [2020] ACTSC 158
Saddler v Wakim [2023] ACTMC 11
Mort Street Bar's financial obligations under the Lease
(a) water consumption charges (clause 8.2);
(b) a contribution to outgoings for each ongoings year (clause 9.1 and Items 12 and 25 of the Reference Schedule at Annexure A to the Lease);
(c) any GST payable on a taxable supply (clause 12.2); and
(d) interest payable on any amounts not paid by Mort Street Bar on time, calculated on daily balances at the rate of 14% per annuum (clause 13.6 and Item 15 of the Reference Schedule).
(a) the nature of the Lease, being an agreement that is typified by the use of premises in exchange for the payment of rent (in the sense of being a land use payment rather than the definition given by the Lease);
(b) the parties' agreement on an Annual Rent figure;
(c) the absence of any other obligation to pay a land use charge; and
(d) the assumption in certain clauses of the Lease that the Lease did require Mort Street Bar to pay Annual Rent (see, for example, clause 12.1).
(a) the due payment by Mort Street Bar of all the amounts payable by Mort Street Bar under the Lease; and
(b) the timely performance and observance of all the covenants and agreements contained or implied in the Lease and to be performed and observed by Mort Street Bar.
The guarantee and indemnity given by the Guarantor under this clause 29 will be irrevocable and continuing and will extend to cover all obligations of the Tenant to the Owner however arising, and they will continue and remain in full force and effect until the due performance and observance by the Tenant of all the agreements and conditions to be performed and observed by the Tenant in accordance with the terms of this Lease.
17.1 The Guarantor guarantees to the Licensor the timely performance and observance of all the covenants and agreements contained or implied in this Deed and to be performed and observed by the Licensee.
17.3(b) The guarantee and indemnity given by the Guarantor under this clause 17 will be irrevocable and continuing and will extend to cover all obligations of the Licensee to the Licensor however arising, and they will continue and remain in full force and effect until the due performance and observance by the Licensee of all the agreements and conditions to be performed and observed by the Licensee in accordance with the terms of this Deed.
(a) annual rent;
(b) water and sewerage outgoings;
(c) Mort Street Bar's outgoings contribution;
(d) insurance;
(e) the Licence fee;
(f) GST; and
(g) amounts owing under the temporary COVID arrangement.
Amounts owed by Mort Street Bar to the Applicants
(a) the Licence was, to some extent at least, interdependent with the Lease;
(b) the overall sum claimed by the Applicants is less than the amount they are owed under the Lease and Licence;
(c) the Applicants have not sought interest in relation to their repair costs; and
(d) the contribution made to the overall sum, for arrears under the Licence, is small.
(a) the due payment by Mort Street Bar of all the amounts payable by Mort Street Bar under the Lease; and
(b) the timely performance and observance of all the covenants and agreements contained or implied in the Lease and the Licence and to be performed and observed by Mort Street Bar.
The parties in a proceeding under this Act must bear their own costs unless the Magistrates Court or Supreme Court makes an order about costs
(a) it was a term of both the Lease and the Licence that Mort Street Bar would be liable for the Applicants' costs in relation to the enforcement of the agreements being, at least in relation to the Lease, on a full indemnity basis;
(b) on the evidence before the Court, there was no defence that Mort Street Bar or the Respondent could have raised to the Applicants' claims; and
(c) the Respondent's failure to respond to the demand that was issued to her, and to engage in the proceedings that the Applicants were subsequently forced to commence, meant that the Applicants were required to pursue the matter to final hearing and incur a range of costs in doing so.
(a) the evidence relating to the costs sought must be sufficiently detailed and must clearly identify the components of the costs incurred and how they have been calculated: Motor Trades Association of Australia Superannuation Fund Pty Ltd v Rickus [2007] FCA 1878 at [26]; and
(b) the costs should be proportionate to the nature and importance of the case: Canvas Graphics Pty Ltd v Kodak (Australasia) Pty Lt__d [1998] FCA 23.
An affidavit in support of an application for a gross sum costs order should provide a secure foundation for the court's assessment of the reasonableness of the gross sum sought. That requires the court to have sufficient information to assess, at a broad-brush level, whether costs have been reasonably incurred and are of a reasonable amount.
(a) $62,200.09 in professional fees excluding Counsel's fees; and
(b) $13,475 in Counsel's fees.
(a) as at the date of the further hearing in March 2025, the work-in-progress balance was $5,568.20;
(b) their estimate for the further hearing was $660; and
(c) Counsel's estimate for the further hearing was $2,200.
I certify that the preceding seventy-eight [78] numbered paragraphs are a true copy of the Reasons for Decision of His Honour Magistrate Temby.
Hosmer Holdings
Sixsmith [2025] ACTMC 13
(1995) 57 FCR 119
(1977) 180 CLR 266