In the case of Sentinel Industrial Pty Ltd v Yamba Shipping Pty Ltd [2024] QSC 261, the Supreme Court of Queensland ruled in favour of the plaintiff, Sentinel Industrial Pty Ltd, against the defendants Yamba Shipping Pty Ltd and its sole director, Warren Alfred McKay, regarding breaches of land and seabed subleases. Sentinel, owning the subleased land, terminated the agreements due to Yamba's failure to pay rent and outgoings, alongside refusal to comply with sublease covenants, like consenting to a lease surrender. Yamba Shipping argued that Sentinel’s actions violated the Retail Shop Leases and Other Commercial Leases (COVID-19 Emergency Response) Regulation 2020, suggesting protective regulations against breach-related termination during the pandemic. However, the court found Sentinel's termination lawful, noting insufficient adherence by Yamba to negotiation requirements under the COVID-19 regulations and pre-existing covenant breaches unrelated to the pandemic. Ultimately, the court ordered judgment in favour of Sentinel, dismissing Yamba’s counterclaim and requiring the defendants to compensate for damages, including unpaid rent and repair costs, minus specific deductions.
Full text: https://www.sclqld.org.au/caselaw/150197