Don Webb v Dia Kensetsu Company Ltd [1998] RSLT 27
[1998] RSLT 27
RETAIL SHOP LEASES ACT 1994
In the matter of
Dispute No.88 of 1997
DON J WEBB
- Claimant
- and -
DIA KENSETSU COMPANY LIMITED
- Respondent
DECISION
Given on 18 December 1998,
in Brisbane
-- 1 of 15 --
Webb-v-Dia Kensetsu Decision - Page 2
In this dispute, the Tribunal orders that the claimant's claim be dismissed. The
reasons follow.
This matter was commenced by a Notice of Dispute pursuant to s.55(1) of the
Retail Shop Leases Act 1994 ("the Act") dated 5 August 1997, and filed on 6
August 1997. A mediation hearing was conducted on 1 September 1997. No
agreement was reached. The Mediator referred to the Chief Executive, who
referred to a Tribunal in accordance with s.65 of the Act. Thereafter, various
directions hearings were called and conducted, the first to make an order in the
standard form in such matters, and the remainder to enable the claimant to
clarify his case and state the issues with precision to enable the respondent to
know the case it had to answer, and to file and serve material in accordance with
the original order. At the first full Tribunal hearing, it became apparent that the
details of loss referred to were the loss not of the claimant tenant, but of a
company Gems & Minerals Pty Ltd which the claimant controlled, and which
carried on business in the retail shop premises. The hearing was adjourned,
again for the purpose of enabling the claimant to present his case in a
comprehensible form. The claim was heard by a full Tribunal on Monday to
Wednesday, 9-11 (inclusive) November 1998.
The particulars of the claim as stated in the Notice of Dispute filed on 6 August
1997 are: -
"Claiming compensation as a result of actions by the landlord.
1.Sinage (sic).
2.Misrepresentation.
Bond money".
The claimant then filed an amended Notice of Dispute naming himself, Don J
Webb, as first applicant, and the company Gems and Minerals Pty Ltd as
second applicant. At a directions hearing, the Tribunal refused an application for
an order that Gems and Minerals Pty Ltd be joined as an applicant. At the
commencement of the hearing on 9 November 1998, the claimant, by his agent
Mr Swindells of Counsel, produced further amended particulars of his claim in a
document which was formally tendered as an Exhibit on the following day and
admitted and marked "Exhibit 8." Exhibit 8 is headed, "Particulars of
Applicant's Loss." The first page of the document sets out certain "losses in
-- 2 of 15 --
Webb-v-Dia Kensetsu Decision - Page 3
relation to shop premises", itemised as follows: -
"a.Purchase of various shopfittings - $3000.00.
b.Purchase of plant and equipment for shop - $10,000.00
c.Cost of installing and fitting all of the above items - $8,000.00.
d.Purchase of stock by Don J Webb which was to be sold by Gems and
Minerals Pty Ltd on behalf of Don J Webb, but was not in
fact sold - $20,000.00.
e.Cost of dismantling and un-installing (sic) abovementioned fixtures,
fittings, plant and equipment - $4,000.00
f.Loss of profits from sale of shop lease - $5,000.00
Total Loss: $50,000.00"
That front page of Exhibit 8 is followed by two pages, headed: "Claims of Don J
Webb (First Applicant)"; then by two further pages containing details of the
expenses listed as a. to e; and then by "Attachments D-1", the first being a letter
handwritten on what appears to be the letterhead of R & M Legg Holdings Pty
Ltd, trading as Selective Leasing, dated 1/7/98, bearing the signature "R Legg",
the second being an invoice in a form used by Santon Pty Ltd, trading as Santon
Souvenirs and Opals, dated 29/11/96, in a total amount of $10,600.00, endorsed
with the word "Received" and a signature which appears to be that of the
claimant D J Webb; the third being an "Option to Purchase" issued in the name
of "Fast Cash"; and the fourth a note from Fast Cash to the claimant apparently
showing sales from the claimant to Fast Cash. The last-mentioned (fourth)
attachment bears at the foot an endorsement, "Loan money from sales Fast-
Cash to D J Webb for stock purchases." The statement of the orders sought by
the claimant was amended on the application of the claimant to specify the
matter of compensation sought to be "in the sum of $50,000". Counsel for the
claimant stated that the letter dated 1/7/98 on the letterhead of Selective Leasing
did not state the facts correctly when it referred to a "loan to purchase stock and
goods" and that it should have referred to purchase of plant and equipment for
the shop. The signatory to the letter was not called to give evidence. Counsel
for the respondent, Mr Collins, questioned how the claimant, who was the
receiver rather than the creator of that letter, could give evidence to the effect
that the letter was in error. That question was raised at a later stage in the
hearing.
The claimant through his Counsel abandoned previous claims for loss and
damage and relied upon the particulars of loss and damage set out in Exhibit 8.
-- 3 of 15 --
Webb-v-Dia Kensetsu Decision - Page 4
But the claimant did not abandon, and indeed, expressly relied upon the alleged
false and misleading statements or misrepresentations set out in Items 4 and 5
of the Amended Particulars of Claim dated 11 May 1998, in which an attempt
was made to join the company Gems and Minerals Pty Ltd as the second
applicant. The relevant paragraphs read as follows: -
"4.The respondent, through its servants, agents or employees during the
negotiation process (i.e. the process which led up to the
granting and acceptance of the retail shop lease in
question) made statements to the first and second
applicants to the following effect:
(i)That a hotel would be built next door to the retail shopping centre and
an accommodation tower would be built over the top
of the retail shopping centre, and the entrance to the
said hotel would be located near Shops 11, 11A and
14.
(ii)That one big sign would be placed in the ground floor mall area of the
retail shopping centre near the statue of `David' to
divert shoppers upstairs to the level upon which
Shops 11, 11A and 14 were located.
(iii)That the `Oyster Bar' which was part of the establishment known as
`King Arthur's Table' would be open 11.00 a.m. to
5.00 p.m., and 5.00 p.m. until late in the evening
every day.
(iv)That Level One of the retail shopping centre would be all boutique
retailers.
5.Implicit in all these statements was the suggestion that as a result of the
above, there would be a large and increasing volume of
shoppers passing shops 11, 11A and 14."
The shop first occupied by the claimant was Shop F11, after which the claimant,
by arrangement with the respondent's agent, occupied Shops F11A and F14.
Written leases were entered into and duly stamped in respect of Shops F11 and
F14. Although a document intended to become a lease of Shop 11A was
prepared and submitted to the claimant through his solicitors, that document was
not signed by the claimant or on behalf of the respondent. Under cross-
examination the claimant did state that the reason for his not signing the lease
was not related to the premises themselves, but to advice given to him by his
solicitors that the terms of the lease should be amended in certain respects. The
-- 4 of 15 --
Webb-v-Dia Kensetsu Decision - Page 5
claimant could not recall what those respects were. (Transcript pp 169-171)
The discussions concerning the lease of Shop F11A took place before the
claimant went into Shop F11 on or about April 1997. The claimant in his
statement dated 6 August 1998 (which as amended became Exhibit 3) states
that in 1996 he was the personal lessee of a retail shop F2 located on Level One
of the "Galleria Shopping Centre" at Gold Coast Highway, Surfers Paradise, and
from that shop he conducted a mixed souvenir and opal retail and wholesale
business called Crafts Australia, through a company called Ruby Brae Pty Ltd.
He goes on to state that prior to August 1996 he commenced familiarising
himself with the availability of retail shop leases for retail shops in the Gold Coast
area, and the retail market in general. At that time he was considering moving
locations, as he believed the rent was too high and likely to increase further
without any increase in trade being likely. He went on to state that he
commenced making inquiries with "Vivian Dayton" (sic) who was Centre
Manager of Raptis Plaza. In paragraph 11 of Exhibit 3 the claimant states:-
"During negotiations with the respondent, the respondent made the
statements contained in paragraph 4 of the documented headed,
`Claims of Donald John Webb'.
In an earlier statement dated 28/10.97 but which, in spite of its date, became
Exhibit 4, the claimant states that he commenced trading in Shop F11 at Raptis
Plaza on or about 14 November 1996 and signed a lease on or about 1
December 1996. That lease is among the documents filed. It relates to Shop
F11 and is expressed to commence on 1 December 1996 and expire on 30
November 1997. Although the evidence shows that the claimant moved from
Shop F11 to Shop F14, adjoining Shop F11A (between which shops a partition
was removed, effectively converting them to one shop), there is no suggestion
that the term of the lease was ever extended beyond 30 November 1997.
In paragraph 5 of Exhibit 4, the claimant states:-
"I was first shown a shop in Arcade Three. As I had heard that Arcade
Three experienced severe trading difficulties, I inquired about retail
space on the First Floor."
In paragraph 10 of an attachment headed, "Level One Problems" which also
forms part of Exhibit 4, the claimant states:-
"I was offered a shop in Arcade 3 at a rental in excess of $576 per week.
However, I said no, as it was too expensive. They have since let it
to a tenant on a month-to-month basis of $250 per week. Had this
been offered to me, I would have accepted it at this rental. In my
lease of Shop F11 it was written I was to be offered any rental to
-- 5 of 15 --
Webb-v-Dia Kensetsu Decision - Page 6
the other parts of the Centre first - this had not been done."
In oral evidence, the claimant said that the offer of the shop in Arcade Three was
made before he decided to take the lease on Level One, and was in fact offered
to him before he went to inspect Level One.
Nowhere in Exhibit 3 or Exhibit 4 does the claimant state that he would not have
entered into the initial lease of Shop F11 at Raptis Plaza or occupied that shop
or the later shop F11A and F14, had he not relied upon the representations
made by Vivienne Deighton. Indeed, as mentioned above, he would have
accepted a lease on the ground floor of Raptis Plaza had the rent been a great
deal lower than that at which it was offered to him. In Item I on the last page of
Exhibit 4, the claimant states:-
"I am seeking 12 months rent free and monetary damages - also, I want
to have only one shop. Any arrears of rent to be waived, sign
placed in proper position, and a decent sign downstairs indicating
the retail shops upstairs."
It is not until one reads Exhibit 8, a document filed for the first time on the first
day of the hearing, 9 November 1998, that one finds, in paragraphs 6 to 9
inclusive of the claims of Don J Webb, a statement that the claimant was
induced by the allegedly false and/or misleading statements referred to in
paragraph 4 (set out above in this decision) to enter into the lease of Shop F11.
The questions of fact before the Tribunal, as defined in Exhibit 8, are: -
1.Were the statements referred to in paragraph 4, set out above, or some
of those statements, made to the claimant?
2.Were the statements or was any statement made by a person acting
under the authority of the lessor?
3.Was the claimant induced by the statements or any of them to enter into
his lease of Shop F11 at Raptis Plaza?
4.Were any statements, or was any statement, which induced the
claimant to enter into the lease, a "false or misleading
statement or misrepresentation" within the meaning of that
expression in subs.43.(2)(a) of the Act?
5.Did the claimant suffer loss or damage because it entered into the lease
of Shop F11 at Raptis Plaza?
In view of submissions made on behalf of the respondent, to which reference will
-- 6 of 15 --
Webb-v-Dia Kensetsu Decision - Page 7
be made later in this decision, it is necessary to point out and explain the basis
upon which a lessor may be liable to pay to a lessee compensation pursuant to
s.43.(2)(a) of the Act. That subsection does not provide for payment of damages
for misrepresentation or deceit. Instead, s.42 of the Act implies into every retail
shop lease to which the Act applies (and this is such a retail shop lease) a
covenant which is set out in s.43.(2)(a) in the following terms: -
"The lessor is liable to pay to the lessee reasonable compensation for loss or
damage suffered by the lessee because -
(a)the lessee entered into the lease, or a renewal of it, on
the basis of a false or misleading statement or
misrepresentation made by the lessor or any person
acting under the lessor's authority;"
The entry into the retail shop lease (or a renewal of it) is the cause of loss to
which the covenant refers, and it is loss caused by entry into the lease for which
the lessor covenants to pay reasonable compensation to the lessee. It is not the
case that no compensation is payable if the loss would have been incurred, even
had the representations relied upon been made good.
Counsel for the respondent submitted that the representations upon which the
claimant relied were not representations of presently existing facts, but rather,
representations as to future matters. He went on to submit that representations
as to future matters will be misleading only if it is shown that the maker of the
statement knew, at the time the statement was made, that it was false, or the
statement was made with reckless indifference to its truth or falsity. He relied on
James-v-ANZ Banking Group 1986, 64ALR 347, and Global Sportsman Pty
Limited-v-Mirror Newspapers 1984, 2 Federal Court Reports 82, as authorities
for that well-known proposition. He then went on to submit that, in determining
the character of a representation, the Court tests the representation at the time it
was said to have been made, and not with the benefit of hindsight. He cited Bill
Acceptance Corporation-v-GWA 1983 78FLR 171, and Agaiby-v-Darlington
Commodities 1985, ATTR40-535, as authorities for that proposition. The
authorities do support the submissions, but that is not the end of the matter.
The Act contains no provisions equivalent to s.51A of the (Commonwealth)
Trade Practices Act 1974, which, in effect, reverses the onus of proof by
requiring a corporation to demonstrate that it had reasonable grounds for making
a representation, or the corresponding s.37 of the (Queensland) Fair Trading
Act. The onus of proof before a Retail Shop Lease Tribunal remains on the
claimant. Where a representation concerning a future event is made in such a
manner as to be taken, reasonably, to mean that the maker has certain
knowledge that the event will occur, then the Tribunal regards such a
-- 7 of 15 --
Webb-v-Dia Kensetsu Decision - Page 8
representation as being to a present fact, namely, the state of the mind of the
maker of the representation. Such a representation can be false or misleading,
as can any other representation as to a present fact. Thus, although the
submissions made on behalf of the respondent are supported by authority, they
do not mean that the claimant cannot succeed, simply because the
representations did make reference to future events.
It is convenient at this point to deal with and then abandon a submission made
by Counsel for the claimant concerning the application of the principle
established in Jones-v-Dunkel & Anor in [1958-1959] 101C.L.R. 298, a decision
of the High Court of Australia. That case is the leading authority on what
inferences, if any, can be drawn when a party to litigation does not call a certain
witness. In this instance, Counsel for the claimant was referring to the fact that
the respondent did not call one Stephen Knudsen, a director to whom Ms
Deighton reported. The following questions and answers appear on transcript
page 267:-
Q.And you, generally speaking, would either consult with or take directions from
Martin Knudsen, wouldn't you?--
A.Yes.
Q.So, for instance, if there had been issues about what to do with this, Steve - I
apologise, the name Steve Knudsen and he was your supervisor,
if you like, your superior?--
A.My director.
Q.So hypothetically, if these things were to occur, these representations, or
problems with them, you'd have to speak to him about sorting it
out?--
A.Yes.
There was no clear indication given to the witness as to what Counsel for the
claimant was talking about. When asked by the Chairman to clarify what he
meant by "if these matters arose", Counsel for the claimant replied: -
"The representation issues. I was asking her about representations, and I said if
these matters arose, if there was conflict with them, if there were, like,
things in the paper, and she was going to make representations, and if
she was going to try and deal with Mr Webb about them, would she have
to discuss it with Mr Knudsen."
On that submission, and relying upon Jones-v-Dunkel, Counsel for the claimant
further submitted that inferences adverse to the respondent could be drawn from
the fact that the respondent had not called Mr Knudsen. In reply, Counsel for the
-- 8 of 15 --
Webb-v-Dia Kensetsu Decision - Page 9
respondent submitted that the claimant had not alleged any representation was
made to him by Steve Knudson. Counsel for the claimant then produced and
tendered a letter from the claimant to the respondent's solicitors dated 30 March
1998, a further such letter dated 1 April 1998, and a letter to the Assistant
Registrar of the Retail Shop Leases Registry, also dated 1 April 1998, requesting
that a "subpoena" be served on Steve Knudsen, requiring him to appear for
cross-examination. The letters were admitted and marked Exhibit 29, but they
lose their effect completely once it is realised that they have no relation to the
matter before the Tribunal on 9, 10 and 11 November 1998, and that the
claimant, having obtained legal representation, did not again seek the issuing of
an attendance notice. In Jones-v-Dunkel, which was a jury trial, the Judge at
first instance gave certain directions in response to a question asked by a
juryman. When the appeal came before the High Court, three Members held
that the jury should have been told that any inference available to the plaintiff for
which there was ground in the evidence might be more confidently drawn when
a person, presumably able to put the true complexion on the facts relied upon as
the ground for the inference, has not been called as a witness by the defendant,
and that the evidence provides no sufficient explanation of his absence. In
Australian Commercial Research and Development Ltd-v-Hampson [1991] 1QD
R.508, the Trial Judge, Mackenzie J said at page 38 with reference to the rule in
Jones-v-Dunkel: "However, the rule does not permit the filling in of gaps in the
evidence. It does not convert conjecture and suspicion into inference .... the rule
is concerned with the confirmation of inferences which may be drawn from
proven facts in the case." In the dispute before the Tribunal, there are no
inferences to be drawn from proven facts because the facts, if proven, do not
require the drawing of inferences. Additionally, there is no real evidence before
the Tribunal to show or indicate that Knudsen could have "put the true
complexion on the facts relied upon" by the claimant. On the ruling of the
Chairman, the Tribunal holds that there is no room in this dispute for the
application of the rule in Jones-v-Dunkel.
A further question of law arose in relation to the proposed calling of evidence
from two other tenants in Raptis Plaza. Counsel for the claimant submitted that
the "similar facts" evidence that those witnesses might give would have some
probative value towards establishing the claimant's case. Counsel for the
respondent submitted that the evidence should not be admitted on the basis that
it did not touch sufficiently upon the misrepresentations which the claimant
alleged had been made. On the ruling of the Chairman, the "similar facts"
evidence was held not to be relevant and was not admitted. In fact, all three
Members of the Tribunal had read the written statements of the witnesses
concerned and agreed that admission of the evidence concerned would not take
the claimant's case further.
The way is now clear to consider the questions posed above. It is not necessary
-- 9 of 15 --
Webb-v-Dia Kensetsu Decision - Page 10
to dwell upon the question of whether such representations, if any, as were
made and relied upon by the claimant, were made by a person acting under the
authority of the lessor. The witness Vivienne Deighton gave evidence to the
effect that she was the manager of the company administering Raptis Plaza on
behalf of the owner.
The evidence concerning the representations alleged by the claimants to have
been made, appearing in paragraph 4 of the "Claims of Don J Webb" is as
follows: -
"Representation (i) namely `that a hotel would be built next door to the
retail shopping centre and an accommodation tower would be built
over the top of the retail shopping centre and the entrance to the
said hotel would be located near Shops 11, 11A and 14'."
The claimant says in paragraph 9 of Exhibit 4:-
"I was also told by Ms Deighton that accommodation would be built over
the top of Raptis Plaza and the area that I was leasing would be
an entrance area to an Hotel. The Hotel was to be built on the site
next door to Raptis Plaza."
That exhibit embodies the claimant's statement dated 28/10/97. In Exhibit 3, the
statements made on 6 August 1998, the claimant at paragraph 11 states:
"During negotiations with the respondent, the respondent made the statement
contained in paragraph 4 of the document headed `Claims of Donald John
Webb'." That paragraph is referred to above. It sets out the alleged
misrepresentations. To support his evidence, the claimant produced a
photostatic copy of an article stated by the claimant to have been published in
the newspaper, the Gold Coast Bulletin on 19 October 1996 under the headline,
"Forrester may build Tower above Plaza". The photocopy did not contain the
name "Gold Coast Bulletin" nor the date. The Tribunal was assured by the
claimant in his oral evidence that the press item was found by a search at the
premises of the Gold Coast Bulletin and that search established its date as 19
October 1996. In her written statement of evidence dated 16 January 1998, the
respondent's witness, Vivien Lorette Deighton, stated at paragraph 14: -
"I did not indicate to Webb that accommodation would be built over the
top of Raptis Plaza. The first conversations that Webb and I had
was after it had appeared in the papers and he came to see me,
and I referred him to our lawyers for comment. I have never ever
induced a client to lease Raptis Plaza on the basis of a hotel being
built at the existing site. I have never had any information or
knowledge of what proposals were intended for either vacant land
-- 10 of 15 --
Webb-v-Dia Kensetsu Decision - Page 11
or accommodation to be put on top of Raptis Plaza."
Ms Deighton was cross-examined, with perhaps excessive severity, by Counsel
for the claimant. She was referred to the press clipping, Exhibit 25, but
nevertheless reiterated her statement: "I have never had any information or
knowledge of what proposals were intended for development of the adjacent
vacant land or the space over Raptis Plaza, if any." That statement is not
inconsistent with the witness having seen the article Exhibit 25. The article is
almost wholly conjecture. It does not represent plans for development. In fact, it
contains a sentence, "Foresters Development General Manager Mike Hubner
says plans for the site are likely to be announced within a fortnight" following an
earlier sentence reading, "....and a 263 room five-star hotel on the adjoining side,
but its plans have not gone ahead." The witness Ms Deighton was quite
unshaken on cross-examination. In her second statement dated 17 April 1998,
Ms Deighton said at paragraphs 46 and 47:
"I said something like `I know nothing about it, and if you want to ask
about it, ring Martin Klapper of Clarke and Kann, the lawyers,
about it' and then gave him the phone number for Klapper. I told
Webb to phone Klapper because I had seen the newspaper article
in the Gold Coast Bulletin before I had spoken with Webb and I
knew that a previous tenant had alleged that it had been
represented to him that there would be a hotel, so I rang Klapper
for his advice. Klapper told me that if anyone asked about it, I was
to tell them to ring Klapper, and that was what I did."
That statement, too, is not inconsistent with the witness's statement that she was
not aware of proposals for development. On balance, the Tribunal prefers her
evidence to the evidence of the claimant, and does not accept the claim that
representation (i) was made.
With regard to the alleged representation (ii), namely, "that one big sign would be
placed in the ground floor mall area of the retail shopping centre near the statue
of `David' to divert shoppers upstairs to the level upon which Shops F
11, F11A and F14 were located," the claimant stated in paragraph 11 of his
statement Exhibit 4: -
"Ms Deighton also told me that new signs would be placed in Raptis
Plaza and that further efforts would be make to tell customers that
retailing was occurring on the First Floor. Ms Deighton said there
would be a large sign indicating that shops were upstairs similar to
the Paradise Centre signage. Also, the Directory of Tenant
Services would be improved to direct people upstairs."
-- 11 of 15 --
Webb-v-Dia Kensetsu Decision - Page 12
In his statement of 6 August 1998, the claimant at paragraph 11 said: "In
negotiations with the respondent, the respondent made the statements made in
paragraph 4 of the document headed, `Claims of Donald John Webb'." The
respondent's witness, Ms Deighton, said in paragraph 17 of her statement dated
16 January 1998: "Again, I did not say that large signs to attract people upstairs
would be constructed. There is signage above the escalators to alert customers
to stores upstairs."
In paragraph 48 of her second statement dated 17 April 1998, Ms Deighton said:
"I do not know anything about the Paradise Centre sign referred to in paragraph
12 of Webb's statement, and I did not say to Webb at any time that there would
be such a sign. Although, I did say to Webb that further efforts would be made
to tell customers that retailing was occurring on the First Floor." In paragraph 49
of that statement she said: "I did not say that the Directory of Tenant Services
would be improved to direct people upstairs as alleged in paragraph 12 of
Webb's statement, as the Directory Board was brand new and it was updated
when there were tenancy changes. I don't know how it could be `improved' and I
didn't say any such thing to Webb.".
In cross-examination, the claimant did not establish the allegation relied upon. It
is common ground between the parties that there was some talk of some
signage. On the balance of probabilities, the Tribunal prefers the evidence of Ms
Deighton.
With regard to representation (iii), namely, "That the `Oyster Bar' which was part
of the establishment known as `King Arthur's Table' would be open 11.00 a.m. to
5.00 p.m. and 5.00 p.m. until late in the evening every day", the Tribunal is
satisfied that Ms Deighton did convey to the claimant the information that she
had been informed by the proprietors of the Oyster Bar that that is what would
happen. In fact, the Oyster Bar did open and remained open for some time.
There is no force in the submission made by Counsel for the claimant that this
representation (iii) was proved or that misrepresentation was made to the
claimant. Indeed, the evidence shows that the claimant saw for himself on at
least one occasion before he entered into the lease that the "Oyster Bar" was not
open.
With regard to representation (iv), namely: "That Level One of the retail shopping
centre would be all boutique retailers", the claimant's evidence is that when he
inspected Level One the Chamber of Commerce had premises there, and that
there was another empty office space on that level. He said he assumed from
what Ms Deighton told him, that the Chamber of Commerce would be moved up
to a higher level, but acknowledges that Ms Deighton never made a positive
-- 12 of 15 --
Webb-v-Dia Kensetsu Decision - Page 13
statement to that effect. Further, the claimant's evidence is that, with the
exception of the Chamber of Commerce premises, the vacant office, and the
premises he took, Level One was indeed occupied by "boutique retailers". In
paragraph 5 of his document headed, "Level One Problems", being part of
Exhibit 4, the claimant said: "Again I state that it was clearly told to me that the
balance of all shops on Level One would be retail. Deighton also definitely said
that large signs would be erected downstairs to direct customers upstairs."
When asked to explain what he meant by the expression "the balance" of all
shops on Level One, the claimant did not give a satisfactory answer. The
Tribunal accepts that the claimant believed that all the premises on Level One
would be occupied by retailers, but holds that he was not justified in assuming
that the Chamber of Commerce offices would be moved to a higher level, or that
the small office which was vacant when the claimant inspected Level One would
necessarily be left for retail purposes. It seems to the Tribunal that the
expression "the balance" of all shops, means the shops on Level One other than
the Chamber of Commerce offices and the vacant office. Indeed, it appears that
such was the case at the time when the representation was made.
In Item 5 of the document headed, "Claims of Don J Webb (First Applicant)", the
claimant claims that: "Implicit in all these statements was the suggestion that as
a result of the above, there would be a large and increasing volume of shoppers
passing Shops 11, 11A and 14." Counsel for the respondents submitted that
s.43.(2)(a) of the Act does not contemplate implied representations. Whether or
not that objection is correct in the law, the Tribunal is not satisfied that the
evidence establishes the suggestion alleged.
The claimant's evidence as to his reliance upon the representations alleged was
not convincing. His lease of his premises at Level One at "Galleria" either had
expired or was about to expire, and the alternative centres considered by the
claimant were "Raptis Plaza" and "Dolphin Arcade". In the claimant's own
evidence, he preferred "Raptis Plaza" because of its location, although it is not
very far distant from the Arcade. The rent at "Raptis Plaza", where he eventually
took premises, was at a lower rate than rent at the Arcade. The claimant made
and relied upon his own investigations of trading conditions at Level One at
"Raptis Plaza". He made inquiries of tenants on Level One. The claimant gave
evidence to the effect that he is an experienced retailer, having been engaged in
that business for a number of years. Having regard to all the relevant evidence,
the Members of the Tribunal cannot be satisfied that the claimant has discharged
the onus lying upon him of proof on the balance of probabilities that he was
induced by any representations made on behalf of the lessor (other than as to
rental) to enter into the lease of Shop F11 at "Raptis Plaza".
The foregoing conclusions are sufficient in themselves to dispose of the claim;
but for the guidance of future claimants, the Tribunal thinks it desirable to
comment upon the standard and degree of proof required in respect of alleged
-- 13 of 15 --
Webb-v-Dia Kensetsu Decision - Page 14
loss and damage.
Admittedly, the claimant was handicapped by absence of records which
apparently became unavailable to him when his former accountant transferred to
Hong Kong. Nevertheless, concrete evidence was sadly lacking. In this
particular dispute, the claimant faced a problem, pointed out to him at various
directions hearings, arising from the fact that he was the lessee while the
business was conducted by the company Gems and Minerals Pty Ltd. It
appears from the evidence given by the claimant in cross-examination, first, that
he made loans to Gems and Minerals Pty Ltd in respect of items a. b. c. and e. in
the list of loss and damage; that the claimant lent money to the company to
cover those expenses, but then it appeared that the claimant had made no
attempt to recover the loans from the company which, on the claimant's own
evidence, is now trading profitably at "Oasis Shopping Centre" at Broadbeach.
Further, it appeared that the claimant purchased the shopfittings and plant and
equipment and simply permitted the company to use them. He had made no
attempt to recover from the company any compensation for such permitted use.
Further, it was not clear what had happened to all the various items. The prices
at which they were bought and sold were not established, nor were values
established. So far as Item f. is concerned, the claim is untenable, simply
because the claim is based on loss and damage sustained by reason of entering
into the lease. If the lease had not been entered into, it would have had no value
in any case. So far as Item d. is concerned, there is no evidence as to what
actually happened to the stock, and no evidence to show that any loss was
caused in Item d. or arose out of the entry by the claimant into the lease of Shop
F11 at Raptis Plaza. The Tribunal has adopted a standard form of order
regarding the conduct of disputes. That form of order deals, inter alia, with the
filing and delivery of documents. Order 1, which was made applicable to the
claimant in this dispute on 6 August 1998, reads as follows: -
"1.The claimant shall file and deliver copies of all material on which it
relies by Monday 7 September 1998. The material
delivered shall:
(a)contain statements of all witnesses on whom the claimant relies;
(b)set out the exact terms of the order which the Tribunal is asked to
make;
(c)if monetary compensation is sought, the material shall set out the amount
sought, the basis on which it is claimed, and details as to
how the amount claimed is calculated. It will usually contain
profit and loss statements and records.
(Failure to set out the particulars referred to above may result in the claim being
dismissed.)"
-- 14 of 15 --
Webb-v-Dia Kensetsu Decision - Page 15
Order 4 reads:
"Neither party is to lead any evidence at the hearing which is not
contained in the statements or other material filed."
That order was made applicable to the claimant in this dispute on 6 August 1998.
Before a Retail Shop Lease Tribunal, the statements referred to in the
standard order take the place of pleadings which would be required in the
ordinary Courts of Law. The statements are required to be such that both
the other party and the Tribunal can understand the case being made,
and the basis of that case. It must be understood that the order means
what it says.
A W Couper,
Chairman.
-- 15 of 15 --
Official source: https://www.sclqld.org.au/caselaw/RSLT/1998/027