Breach notices – Recent case setting out some of the
rules
Dunn & others v Shivsai Pty Ltd [2022] VCAT
9711
This case in the Victorian Civil and Administrative Tribunal
(VCAT) was brought by the landlord of a supermarket premises in
Murrumbeena, Victoria. The landlord had terminated the lease after
serving a breach notice under section 146 of the Property Law Act
(Vic) 1958. The landlord sought damages of approximately $100,000
from the tenant for breach of the lease.
The tenant's defence was that the landlord had terminated
the lease wrongfully, breached the covenant for quiet enjoyment,
acted unconscionably and caused the tenant losses of approximately
$500,000. The tenant also claimed that in the event the termination
was valid, the landlord had failed to mitigate its losses, and as
such the damages payable to the landlord should be reduced.