In Short
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Retail lease disputes are common and should be addressed early to avoid time-consuming and costly litigation.
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Always check the lease first, as it sets out each party’s rights and obligations.
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Mediation is often required before a tribunal and can resolve disputes without formal orders unless you agree.
Tips for Businesses
Start by raising issues directly with the landlord and keep records of all discussions. Review the lease carefully before taking any formal steps. Treat mediation as a genuine opportunity to resolve the dispute. If the matter progresses to a tribunal, seek legal advice early to prepare evidence properly and avoid unnecessary cost or delay.
Disputes and litigation in retail leases are unfortunately a common occurrence. You should always consider seeing a leasing lawyer and check out these basic steps of how the process works. This article explains how to resolve retail lease disputes in Australia, from self-resolution and mediation through to tribunal hearings and legal representation.
This guide provides key information on how to manage a business dispute as quickly and cost-effectively as possible.
Try to resolve it yourself
Both parties have a mutual underlying interest in keeping the matter outside of litigation and often, maintaining a good relationship. Both parties want to be profitable and for their business to be successful.
Read the lease
This might sound basic – but remember the lease is really what you have agreed to and is the foundation of your relationship. When a problem arises go back and check what the lease says.
Continue reading this article below the formConsider mediation
Mediation is a great alternative to taking legal action. It is a process whereby a trained mediator assists you and the landlord in coming to a resolution. A mediator is not like a judge – they will not make a decision, they are just there to facilitate the process. You don’t have to agree to anything in mediation, but if you do you will sign an agreement and it will become binding.
Taking it to a Tribunal
If the situation is still not resolved you should probably see a leasing lawyer and take the matter to the relevant tribunal. Depending on which state you live in you may be required to go into pre-trial conciliation or mediation. In many states you will first be required to go to a directions hearing at the tribunal.
What is a Directions hearing?
Directions hearings allow for orders for the proceedings to move forward. This might involve things like:
- A decision as to whether or not it is within the court’s scope to hear the matter;
- A decision about whether the dispute is based on questions of fact or questions of law.
A directions hearing is presided over by a tribunal member who usually has a legal background and the member may:
- Dismiss the case
- Direct the case to a particular tribunal member
- Direct the case to a full tribunal (usually three tribunal members hearing it)
- Direct the parties to get witness statements
- Direct the parties to specify to the tribunal the precise type of order they want
- Set a hearing date
What happens if my lease dispute goes to a tribunal?
A tribunal hearing may have up to three members (like judges) who will hear and preside over the case. The members will also decide on a verdict together. At least one of these members will be legally qualified and the others might be representatives of landlords or tenants organisations.
The tribunal can make a range of orders in relation to the lease dispute, including:
- Orders to pay compensation
- Orders to change or correct the lease
- Orders for landlord’s to recovery the premises
- Orders for a party to stop doing something
Should I get legal representation?
Parties are allowed to represent themselves and some people do have success at the tribunal despite not having formal legal representation. However, at the very least you should consult with a leasing lawyer before taking the matter to a tribunal – otherwise it could all be a costly waste of time.
Costs
Usually parties will pay their own costs, unless the tribunal finds that you acted vexatiously in bringing the claim or refused to take part in mediation, in which case you may have to pay the other party’s costs.
Key Takeaways
Retail lease disputes are common, but parties should attempt early resolution to avoid costly litigation. The lease governs the relationship and parties must review its terms before taking any further steps. Mediation provides a structured, non-adversarial process that can resolve disputes without binding decisions unless parties agree. Unresolved disputes may proceed to a tribunal, often beginning with directions hearings that determine scope, evidence, and procedure. Tribunal hearings require clear written and oral evidence, witness attendance, and acceptance that members decide outcomes and orders. Legal advice reduces risk and wasted expense, as parties usually bear costs unless they act unreasonably.
If you need assistance with retail dispute matters, our experienced dispute resolution lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
A directions hearing is an early tribunal step that helps move the dispute forward. A tribunal member decides whether the tribunal can hear the matter, whether issues involve facts or law, and may give orders about evidence, witnesses, submissions, or set a hearing date.
At a tribunal hearing, up to three members hear the case and decide the outcome. Both parties must present written and oral evidence, including witnesses if relevant. The tribunal does not investigate for you and can make binding orders affecting the lease or compensation.
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