In brief - Mediation may not be necessary if it would not
resolve the dispute
In Fordham Laboratories Pty Limited v Sor & Anor,
the New South Wales Supreme Court held that mediation is not
necessary before commencing an action under the
Retail Leases Act if the court is satisfied that
mediation would not resolve the dispute. However, mediation is
normally a necessary step where it may resolve the dispute. Courts
should normally stay proceedings until mediation occurs.
This means that in certain circumstances you may not have to do
mediation before commencing proceedings under the Retail Leases
Act.
In 2003 Fordham Laboratories leased retail premises in South
Camden to Kim-Po Sor and Vattanak Im for a period of three years
with an option to renew the lease for two further three-year terms.
Kim-Po Sor and Vattanak Im took up the first option and continued
their lease for the further three years.
