Law And Management
...OF AUSTRALIA
BETWEEN: AUSTRALIAN COMPETITION AND CONSUMER COMMISSION
APPELLANT
AND: SAMTON HOLDINGS PTY LTD (ACN 062 688 359)
FIRST RESPONDENT
FRANCESCO PARASILITI
SECOND RESPONDENT
GAETANINA PARASILITI
THIRD RESPONDENT
SALVATORE PARASILITI
FOURTH RESPONDENT
MARIA PARASILITI
FIFTH RESPONDENT
FELICE ANTONIO SCIARRETTA
SIXTH RESPONDENT
SILVANA SCIARRETTA
SEVENTH RESPONDENT
JUDGES: GRAY, FRENCH and STONE JJ
DATE: 6 FEBRURY 2002
PLACE: PERTH
STATEMENT OF FACTS
This contract concerned the sale of a business on leased premises
The company which assigned the lease and received the payment was Samton Holdings Pty Ltd (Samton), the first respondent
Samton owns the premises on which a lunch bar business is operated, leasing the land to Patricia and Giuseppe
Farruggio(PGF), who runs the lunch bar business
PGF subsequently sells the business to Executive Bloodstock (the Ranaldis) for $205,000 (however, 71% of this sale price is specified to be good will) (Para 6)
The Ranaldis take over the lease with 3 months until its date of expiry, but with the option to extend the lease for seven years
The option must be exercised by 2 March, 1997, which would allow the Ranaldis to continue operating under the same terms to which PGF is presently entitled (para 10)
Mr. Ranaldi carelessly fails to exercise the option for renewal by the due date. He exercises the option 16 days after its expiration
Samton now demands $70,000 for the lease extension
Thus, in addition to having paid for the business from the lessees, the Ranaldis now have to pay an additional sum of $70,000 to Samton in order to renew the lease.
The ACCC brings an action asserting unconscionable conduct on the part of the lessors in asking for the $70,000 as a price for renewal of...
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