Let’s Talk This Through

Sydney Morning Herald:

Finding the best solution for both parties often requires creative and lateral thinking and proposing various options and alternatives for outcomes, Wein says.

In a recent dispute a tenant wanted to the landlord to undertake significant structural repairs to the building. The landlord did not have the funds to pay for these repairs and the tenant wanted to break the lease.

The outcome was that the tenant ended up buying the building from the landlord for an amount determined by an independent party, taking into account the cost of structural repairs.

In another case, a dispute arose because a franchisee believed a franchisor had misrepresented the customer base at an outlet.

The franchisee’s business was failing, and looked likely to collapse. The franchisee had significant amount of rent in arrears.

After mediation, the franchisor agreed to waive much of the rent in arrears and reduce the cost of the rent. Both parties were happy because the landlord kept an income stream from the tenant and the tenant was able to continue his business.