Willmott Forests High Court appeal dismissed

In brief - High Court confirms that liquidators of landlord companies can disclaim leases, terminating lessees' rights

On 4 December 2013, the High Court of Australia delivered its judgment in Willmott Growers Group Inc v Willmott Forests Limited (Receivers and Managers Appointed) (In Liquidation) [2013] HCA 51. The majority found that under the Corporations Act 2001 (Cth), a liquidator of a landlord company has the power to disclaim a lease granted to a lessee, and the disclaimer terminates the lessee's rights arising under the lease.

It remains unclear what this means in terms of compensation for a lessee whose lease has been disclaimed by the liquidator of a landlord, and how in practice a liquidator would go about the process of disclaiming such a lease.