[2025] SACAT 75
General information, not legal advice.
SA Civil and Administrative Tribunal
2025-08-27
Original judgment source is linked above.
Lombardi & Anor v Lombardi & Anor [2025] SACAT 75
The applicant landlords sought internal review of a decision dismissing their application for vacant possession on the basis that the Tribunal did not have jurisdiction to hear the matter as there was no residential tenancy agreement between the parties.
The applicants submitted that the Tribunal adopted an incorrect approach to consideration of the nature of the relationship between the parties. The applicants submitted that the Tribunal erred by assessing the nature of the relationship by reference to post-contractual conduct and the subjective beliefs of the first respondent. The applicants contended that this meant the Tribunal did not have proper regard, or give appropriate weight, to the written contract between the parties.
The first respondent argued that there was no residential tenancy agreement between the parties and that the applicants purchased the property for the respondents, with the respondents to pay the deposit, mortgage, rates and insurances for the property. The first respondent told the Tribunal that the agreement entered into by the parties for only done so for the purpose of obtaining a tax or Centrelink entitlement.
Held, setting aside and substituting the decision under review:
Internal review - Residential Tenancy - Landlord application - Termination and vacant possession - Breach of agreement - Rent arrears
Internal review - Residential Tenancy - Jurisdictional matters - Existence of residential tenancy agreement
Balfour v Balfour [1919] 2 KB 571
Banner v Banner [2023] SACAT 99
Bruno v Bruno [2023] SACAT 78
Cohen v Cohen [1929] HCA 15; (1929) 42 CLR 91
Equuscorp Pty Ltd v Glengallan Investments Pty Ltd [2004] HCA 55
Henderson v Housing Choices South Australia Ltd [2019] SASC 121
McColl v Hearse [2016] SACAT 38
Minda Incorporated v Carman [2024] SACAT 79
Radaich v Smith [1959] HCA 45; (1959) 101 CLR 209
Re AKS [2016] SACAT 19
Street v Mountford [1985] UKHL 4; [1985] 2 All ER 289
Tronnolone v Edwards and Bryan [2016] SACAT 27
Upper Hunter County District Council v Australian Chillling & Freezing Co Ltd [1968] HCA 8; (1968) 118 CLR 429
Mr Hurburgh with Ms Dry appeared for the applicants in person
The Tribunal's Consideration of the Internal Review Application
Issue 1: Should leave be granted for the internal review application?
... the overriding principle is always the interests of justice. The ordinary approach is that permission will only be granted where an appeal is reasonably arguable and the subject matter is of sufficient substance to justify consideration.
... the Tribunal Member at first instance adopted an incorrect approach to consideration of the nature of the relationship between the Applicants and the Respondents. He did so by assessing the nature of the relationship by reference to post-contractual conduct and the subjective intentions and beliefs of the First Respondent, Rebecca Lombardi (Rebecca), rather than performing an objective analysis of what was conveyed by the words and conduct of the parties, and in particular by their conduct in entering into a written agreement that was expressly stated to be a residential tenancy agreement to which the RT Act applied. This meant that the Tribunal at first instance did not have proper regard to, or give appropriate weight to, the written contract between the parties when determining the nature of the agreement between them.
It is well established that the rights and liabilities of parties to a contract are to be determined objectively, and not by reference to the subjective beliefs or intentions of the contracting parties. As the High Court explained in Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd: > > This Court, in Pacific Carriers Ltd v BNP Paribas, has recently reaffirmed the principle of objectivity by which the rights and liabilities of the parties to a contract are determined. It is not the subjective beliefs or understandings of the parties about their rights and liabilities that govern their contractual relations. What matters is what each party by words and conduct would have led a reasonable person in the position of the other party to believe. References to the common intention of the parties to a contract are to be understood as referring to what a reasonable person would understand by the language in which the parties have expressed their agreement. The meaning of the terms of a contractual document is to be determined by what a reasonable person would have understood them to mean. > > The High Court went on to explain that, consistent with the objective approach to the determination of the rights and liabilities of contracting parties, the law attaches great significance to the signing by a person of a contractual document. In a passage which is apposite to the facts of this matter, the High Court observed that the act of signing a document known and intended to affect legal relations is an act which ordinarily conveys a representation that the person who is signing has read and approved the document and is willing to be bound by it. It was observed that such a representation is even stronger where (as in this case) the signature appears below a perfectly legible request to read the document before signing it. > > These principles have been recently reaffirmed by the High Court in Realestate.com.au Pty Ltd v Hardingham. In that case, Gordon J went on to observe that, if a person signs a contractual document which "on its face appears to be a complete contract, it will contain the whole of the contractual terms". In those circumstances "extrinsic evidence" (that is, evidence of matters other than the terms of written agreement) "cannot be adduced to subtract from, add to, vary or contradict those terms, except in limited circumstances." Such an approach is evidence in the general rule that "it is not legitimate to use as an aid in the construction of [a] contract anything which the parties said or did after it was made".
Issue 2: Should the previous decision be affirmed, varied or set aside?
b. it may, as it thinks fit, allow further evidence or material to be presented to it;
c. it must reach the correct or preferable decision; and
[1] There is no suggestion that the arrangement between the parties is a rooming house agreement.
[2] Tronnolone v Edwards and Bryan [2016] SACAT 27 at [14].
[3] Cheshire and Fifoot's Law of Contract (8th Australian Edition) at para 3.2.
[4] Balfour v Balfour [1919] 2 KB 571; Cohen v Cohen [1929] HCA 15; (1929) 42 CLR 91.
[5] Upper Hunter County District Council v Australian Chilling & Freezing Co Ltd [1968] HCA 8; (1968) 118 CLR 429.
[6] Street v Mountford [1985] UKHL 4; [1985] 2 All ER 289.
[7] A residential tenancy agreement does not need to be in writing.
[8] Radaich v Smith [1959] HCA 45; (1959) 101 CLR 209 at p 213 (Dixon CJ), 214 (McTiernan J), 217 (Taylor J), 221 (Menzies J), 222 (Windeyer J).
[9] See also Peek J in Henderson v Housing Choices South Australia Ltd [2019] SASC 121 at [85] - [88].
[10] [2016] SACAT 38 - without footnotes.
[11] Minda Incorporated v Carman & Anor [2024] SACAT 79 at [7].
[12] Equuscorp Pty Ltd v Glengallan Investments Pty Ltd [2004] HCA 55 at [33].
[13] I note that the applicants' submissions and Book of Documents for the internal review hearing was served on the respondents by the Tribunal on 29 July 2025 and that Ms Lombardi's several tranches of submissions and documents, totalling over 800 pages, were served on the applicants' solicitors by the Tribunal.
[14] This was supported by evidence of the Applicants' bank statements since the commencement of the tenancy.
[15] I agree that it is not necessary to address Ms Lombardi's unproven and disputed allegation that she did not sign a 12-month extension to the initial fixed term agreement. It does not change the outcome. If such an extension were signed by all parties, the tenancy would have become periodic on its expiry. If it were not signed, the tenancy would have become periodic when the initial fixed term expired.
[16] See ss 82 and 83 South Australian Civil and Administrative Tribunal Act 2013.
Lombardi & Anor
Lombardi & Anor [2025] SACAT 75
(1959) 101 CLR 209
(1929) 42 CLR 91
(1968) 118 CLR 429