29/06/2009
Fed Court Order Against Melb Landlord
The Federal Court has ordered a Melbourne retail landlord to compensate four tenants after it engaged in unconscionable, misleading and deceptive conduct.
The court declared Dukemaster engaged in unconscionable conduct, misleading and deceptive conduct and made false representations. It also declared Dukemaster's GM of the Paramount Centre, Patricia Wong, was involved in Dukemaster's contravening conduct.
The ACCC alleged Dukemaster, landlord of retail outlets in the Paramount Centre (Bourke Street), engaged in unconscionable conduct by taking unfair advantage of its stronger bargaining position, exerting undue pressure and using unfair tactics against four tenants in connection with their leases.
It said Dukemaster represented to tenants that it believed rental it proposed was very reasonable and below the market value when in fact this was not the case and that the company did not have a reasonable basis for such a belief.
Justice Michelle Gordon said what had occurred was not a negotiation but an ultimatum the tenant had no choice but to accept the rental amount Dukemaster proposed.
In addition to the declarations of contravention of the Act, the court made orders including injunctions restraining Dukemaster for a period of three years from engaging in similar conduct and an order that Dukemaster and Wong pay compensation to the tenants in excess of $275,000 for their loss and damage suffered as a result of the contravening conduct.