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ARTICLE · 04 JUNE 2009

Landlords - Check Before You Terminate

HopgoodGanim
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The implications of the New South Wales Supreme Court's decision in Symbion Medical Centre Operations Pty Ltd v Lawton Pty Ltd are likely to be significant in commercial leasing disputes as the impact of the global financial crisis increases.

AustraliaReal Estate and Construction
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Richard Gardiner, Associate
Brook Carruthers, Trainee Solicitor

The implications of the New South Wales Supreme Court's decision in Symbion Medical Centre Operations Pty Ltd v Lawton Pty Ltd are likely to be significant in commercial leasing disputes as the impact of the global financial crisis increases.

The decision confirms that unless a lease contains a positive obligation for the tenant to carry on business from the premises, tenants of shopping centres will not be in breach if they cease trading and move out during the term of the lease.

This decision is a reminder for all landlords and their lawyers to not only include a positive obligation in the lease on the tenant to carry on business in the premises, but also to seek legal advice before taking steps to terminate a lease on that basis.

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