THE DISPUTE BETWEEN THE PARTIES
47 On or around 27 February 1998 Mr and Mrs Turner lodged with the Tribunal a notice of dispute. The notice referred to a lease dated 1 September 1994. It charged that the Landlord, Leda, had engaged in unconscionable conduct as described in the Tenancy Tribunal Act 1994 (ACT) ("the Act") and in particular ss 36(1)(d) and (f) of that Act. Interim orders were sought but these orders were said to be preliminary to the allowing of a suitable period during which further details of the application could be lodged with the Tribunal.
48 Sections 36(1)(d) and (1)(f) stipulate specific matters to which the Tribunal could have regard for the purpose of making an order in relation to a dispute before it. The paragraphs read as follows:
"(d) whether any undue influence or pressure was exerted on, or any unfair tactics were used against, the tenant or a person acting on behalf of the tenant by the owner or a person acting on behalf of the owner in relation to the lease;
...
(f) the extent to which the owner's conduct towards the tenant was consistent with the owner's conduct in similar lease transactions between the owner and other like tenants;"
49 The matters which are set out in s 36 are not exclusive of the matters to which the Tribunal could have regard in determining a claim under s 6(1)(b) of the Act that:
" ... another party to the lease has engaged in harsh and oppressive conduct towards the [claimant] (whether that conduct is unconscionable or not)".
50 It is clear that the Tribunal, Mr and Mrs Turner and those dealing with the matter on behalf of Leda understood the dispute to relate to a lease which although dated 7 December 1994 (and not 1 September 1994) showed a commencement date of 1 September 1994. The parties to that lease were Leda Commercial Properties Pty Limited as lessor and Classic Gourmet Sausages Pty Limited as lessee. The particulars of the dispute lodged by Mr and Mrs Turner alleged as follows:
"1) The Respondent refused to give the Applicants time in which to pay arrears of rent
2) The Respondent re-entered the premises on 6 March 1998 without adequate warning.
The conduct was harsh and oppressive, and unconscionable in that:
a) The Applicants were willing, and had offered, to pay off arrears on terms similar to terms which the Respondent had granted to other tenants of the shopping centre in similar cases;
b) (i) The Applicants were forced to sell off existing stock at reduced prices and thereby incurred a trading loss on that stock of approximately $10,000;
(ii) The Applicants were unable to remove from the premises their fittings, including coolroom, coolroom panels, cabinets, roller doors, counters, signage and decor and other trade fittings with a combined value exceeded $10,000;
(iii) The Applicants were unable to relocate the business to alternative premises and thereby lost the goodwill of the business;
(iv) The Respondent subsequently leased the premises, including the fittings, being cabinets, counter, roller doors, signage and decor and other fittings and has received rent for them."
51 The dispute between landlord and tenant appears to have had its origin in defaults on the part of the tenant in paying rent under the lease. In the description of the way that dispute developed and the course the proceedings took before the Tribunal, it is convenient to refer to the parties to that dispute as "the Landlord" and "the Tenant" to avoid at this stage the question who the parties to those proceedings were.
52 By September 1995 the Landlord claimed that the Tenant was in arrears in paying the rent. Agreement was reached at that time concerning a repayment schedule to remedy the amount then in arrears. So far as the correspondence filed with the Tribunal on behalf of the Landlord shows, rent was in arrears through to February 1998 when a letter of demand and notice pursuant to the Forfeiture of Leases Act 1901 (NSW), as it applies to the Australian Capital Territory, was served on the Tenant. This precipitated a meeting held on 16 February 1998 at which the question of arrears and other matters in which the parties were in dispute, including the permitted use of the premises, were the subject of discussion.
53 On or around the end of February 1988 the Landlord purported to convert the tenancy to a monthly tenancy. The validity of that notice was in dispute between the parties. On 4 March 1998 the solicitor for the Landlord threatened that his client would re-enter the premises and terminate the occupation of the Tenant should arrears of rent not be paid. A notice of re-entry dated 6 March 1998 was served. It stipulated that rent of $12,833.43 was in arrears and also that the Tenant had failed to provide, as required by the lease, a replacement bank guarantee for an amount equal to one quarter of the annual rent as reviewed from time to time. By notice dated 30 March 1998 the Landlord demanded payment of arrears, said then to be $13,587.11, and required the Tenant to forthwith assign and transfer all of the tenant's fixtures, fittings, plant and equipment and stock of trade in the premises.
54 By letter dated 10 April 1998 the solicitors for the Tenant agreed to request the National Australia Bank to provide a bank guarantee unlimited as to time, noting that a bank guarantee limited in time in the sum of $11,550 was then held by the Landlord. There was also a dispute concerning the fitout and upgrading of the premises, said to be the responsibility of the Tenant.
55 It was the position of the Landlord advanced at the meeting that the rent payable under the lease was significantly in arrears and an acceptable bank guarantee, as required by the lease, had not been provided .
56 Meanwhile on 19 February 1998 the application for interim relief was filed with the Tribunal.
57 In response to material filed on behalf of the Landlord in the Tribunal, being the correspondence etc to which I have referred, Mr Turner in an affidavit told the Tribunal that he had become aware of a number of cases of conduct which he regarded as harsh and oppressive in the light of the way in which his case had been treated. He noted an intention to issue subpoenas to various persons, at least some of whom were named in that affidavit. His case seems to have at least included the claim that there were a number of tenants in the same building who had outstanding arrears of rents or who had failed to provide guarantees but had been allowed to continue trading. He noted in the affidavit that the persons who would give evidence on his behalf would not come forward voluntarily. It may be said that the precise extent of the claimed case to be adduced by or on behalf of the Tenant was far from clear.
58 Meanwhile the application for interim orders came before Mr Burns, a President of the Tribunal, on 5 March 1998. On that occasion a representative of the Turners indicated that statutory declarations would be obtained or subpoenas issued in respect of five tenants. Mr Burns on that day declined to make the interim orders sought, indicating that there was no evidence before him that there was any harsh and oppressive conduct on the part of the Landlord. The notice of dispute was still on foot so far as it related to final relief.
59 The matter came before Mr Burns again on 23 October 1998 on the application by the Landlord to have the application to the Tribunal struck out. It was said that once the interim relief had been disposed of there was no dispute within the terms of the Act. On that day senior counsel who appeared for the Landlord indicated that he wanted the notice of dispute dismissed forthwith. The representative of the Tenant, however, again indicated that there were a number of tenants who had been given time to pay off arrears of rent and sought an adjournment to obtain affidavits from them. Mr Burns adjourned the application until 1 December, noting that an application that he disqualify himself was foreshadowed. It was subsequently made.
60 On 25 November 1998 the matter again came before Mr Burns. The representative of the Turners again indicated that the only way evidence could be obtained from tenants said to have been treated differently was to issue a subpoena. Mr Burns indicated that in his view that would be better dealt with by setting a hearing date rather than, as Leda submitted, by an application to strike out the proceedings. The date of 1 December was, however, confirmed as the date for the hearing of the application by the Landlord to strike out the proceedings. Directions were made that the Tenant file and serve any affidavits by 27 November.
61 Ultimately the matter came before another President of the Tribunal, Mr Somes, on 1 December 1998. Again the representative who appeared for the Tenant, indicated that he was unable to bring forward as witnesses other tenants and could not obtain affidavits from them. Mr Somes indicated that he was dealing with the matter as an application by Leda to strike out the proceedings. The learned President dealt with the matter briefly. After setting out the relationship between the parties and relevant statutory provisions he said:
"The tenants allege in their Particulars of Dispute that the conduct of the landlord was harsh and oppressive, and unconscionable in the way set out in the Notice of Dispute. I have considered these items carefully in the light of the evidence before me and cannot see how the tenant would be able to sustain such a position. I an only deal with this application on the evidence before me and in my view the tenants had every opportunity at the hearing to produce any evidence which they wished to produce in order to resist the application put before the Tribunal by the landlord.
Having considered all the material before me at the hearing on the 1st of December 1998 I am satisfied that in effect no reasonable course of action has been disclosed. It is clear in relation to summary judgment or summary dismissals of actions that before a court or tribunal would take such a step that a court or tribunal must be satisfied that the claim which it is intended to dismiss is without merit.
I am satisfied in the circumstances of the evidence before me that the Notice of Dispute, the subject of the application by the landlord, is without merit and the application by the landlord is granted and the Notice of Dispute is dismissed."
62 A notice of appeal was then lodged by Mr Turner alone with the Supreme Court of the Australian Capital Territory.
63 At some time Mrs Turner was added as a party to that appeal. An amended notice of appeal was sought to be filed in which an order was sought "that the applicants in the Tribunal be Classic Gourmet Sausages Pty Ltd ACN 063 906 883, Ian Turner and Lyn Turner. That the appellants in the Supreme Court be the same people". It is clear that, assuming the Company was a party to the Tribunal's proceedings, it was a necessary party to the appeal in the Supreme Court and indeed the only party with an interest as appellant. Neither Mr nor Mrs Turner was the lessee under the lease.