Retail tenants and relief against forfeiture during COVID-19

If a tenant breaches a lease for non-payment of rent, there is a fundamental breach which gives a landlord the right to terminate the lease and take possession of the premises. However, a tenant has the right to apply to the court for an order restraining the landlord from doing so, otherwise known as relief against forfeiture. In the early stages of the COVID-19 pandemic, courts had yet to redefine the criteria used to award a tenant protection from the re-entry by their landlord. The High Court has previously applied a flexible approach to the instances where relief against forfeiture has been granted. However, how such principles that grant relief against forfeiture operate alongside constantly changing COVID-19 rules and regulations has been unclear. Would the courts extend the tenant’s rights and apply the right to relief more liberally? Sneakerboy Retail Pty Ltd v Georges Properties Pty Ltd [2020] NSWSC 996, decided by Justice Robb on 31 July 2020, goes someway to providing a list of considerations that clarify this issue in the current global health crisis. Background On…

Continue Reading
Close Menu