The recent decision in Spuds Surf Chatswood Pty Ltd v PT Ltd
(No. 4)1 (Spuds Surf No. 4) marks
the conclusion of an ongoing struggle between a landlord and tenant
over the placement of kiosks within a large retail shopping
centre.
Borne out of decreasing revenue and increasing frustrations,
this case illustrates the extent to which landlords may be liable
to tenants if their business decisions impact on tenant income.
In this alert, Partner James Bottomley, Solicitor Justin Raiteri
and Law Graduate Kerrod Giles discuss the key commercial
considerations flowing from this decision for both landlords and
tenants.
Background
Spuds Surf (the tenant) occupied three shops in
a prime area of Westfield Shoppingtown Chatswood, Sydney (the
Premises). The tenant, who had leased two shops in
that area since 1999 and in July 2002, took a new lease of the
existing two shops plus a third additional shop directly next to
its existing shops (the Lease).
