In our
Spring 2013 Property Update Newsletter we referred to
Willmott Forests Ltd (Receivers and Managers appointed) (in
liquidation) v Willmott Growers Group Inc and Willmott Action Group
Inc [2012] VSCA 202. We noted then an appeal to the High Court
had been heard but the decision had not been handed
down.
On 4 December 2013, the Victorian Supreme Court of Appeal
decision was upheld in the High Court by a majority.
The High Court held that liquidators of a company have the power
to disclaim leases granted by the company and so terminate the
landlord's obligations and the tenants' correlative rights
under the leases.
THE FACTS OF THE WILLMOTT DECISION
Willmott Forests Ltd ("WFL") was the
manager of certain forestry investment schemes. WFL leased land to
various parties ("the Growers") to grow
and harvest trees for terms of approximately 25 years.
