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ARTICLE · 23 JANUARY 2019

Is mediation in retail tenancy disputes compulsory?

Article defines a retail tenancy dispute & discusses the application of s68 & whether there are any mediation obligations.

AustraliaReal Estate and Construction

A 'retail tenancy dispute' is a dispute concerning the liabilities, or obligations of a party (or former party) to a retail shop lease or former lease.  Without limiting the generality of this definition, it may include a dispute surrounding a security bond, unpaid rent, make-good costs and/or a loss arising from early termination or the abandonment of the lease.  It is important to note that the definition does not include disputes relating to the value of current market rent payable under a retail shop lease, which is dealt with by section 31 of the Retail Leases Act 1994 ("the Act").

Unless a retail lease is specifically excluded from the operation of the Act, a dispute arising in relation to the lease is affected by section 68, which stipulates:

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