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ARTICLE · 04 NOVEMBER 2013

Lessor found liable for the conversion of a lessee's goods upon repossession

Colin Biggers & Paisley
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A recent NSW case considered the rights of lessors and lessees on termination of a lease.

AustraliaReal Estate and Construction
Gary Newton
Gary Newton

In brief - Lessor to pay significant damages to lessee after terminating lease

The Supreme Court of NSW has determined that a lessor which terminated a lease and repossessed the premises without giving the lessee a reasonable opportunity to remove its fixtures and other property was in breach of the terms of the lease and liable to compensate the former tenant.

Conversion and disposal of lessee's fittings, cash and trading stock

On 15 July 2013, the Supreme Court of NSW handed down judgment in NSL Pty Ltd v 2 Roslyn Street Pty Ltd [2013] NSWSC 930, which considered the liability of the defendant lessor for the conversion and disposal of the lessee's fittings, cash and trading stock upon exercising its right to re-entry.

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