R.M. Williams’ former Adelaide landlord says billionaire-backed firm is bullying him in rent stoush

R.M. Williams is facing a legal stoush in its spiritual home of Adelaide with its former landlord taking it to court for about $200,000 in disputed rent and other costs.

Nicola and Andrew Forrest own R.M. Williams through their Tattarang investment vehicle.

R.M. Williams is facing a legal stoush in its spiritual home of Adelaide, with its former landlord taking it to court for about $200,000 in disputed rent and other costs.

In a standoff which landlord David Lee characterises as a case of “corporate bullying”, his company Mandala M1 Centre has lodged a Supreme Court claim against R.M. Williams, which is owned by Tattarang – the investment vehicle of billionaires Andrew and Nicola Forrest.

The high-end bootmaker strongly disputes there is any merit to the claim, and the company said via a spokesman it would fight the matter in court.

The claim is that R.M. Williams had a lease over the property on Gawler Place in Adelaide’s CBD that ran until January 14, 2023, but that it stayed in the premises for another year on a monthly tenancy, thus triggering extra rental costs under a “holding over” provision.

David Lee of Mandala Developments.

The statement of claim says that the monthly rent under the “holding over” clause of the lease stipulated that the rent would double for that period. Holding over clauses are common in property leases, and can include rent increases, usually intended to compensate the landlord for the uncertainty inherent in not having a longer-term tenant.

Mr Lee’s company is also arguing that the property was not left in good condition, which meant he had to incur further costs to bring it up to standard.

His company is claiming R.M. Williams owes it $163,866 plus about $20,000 for “make good” works, and other costs.

Mr Lee said he felt like the billionaire-backed company was using its size and strength to attempt to intimidate him.

“I am standing against corporate bullying in Australia,’’ Mr Lee said. “This is not just about money; it’s about principle.

“Even if it costs me more in legal fees, I am committed to defending my rights under the lease contract.

“R.M. Williams has failed in their duty as a responsible corporate citizen by not honouring their obligations to a smaller landlord like myself.

“If big corporations are not held accountable, they will continue to take advantage not just of landlords like me, but also of their suppliers, customers and others who rely on them. This is about fairness and integrity in business.’’

A spokesman for R.M. Williams said the company believed there was no basis to the claim, which would be vigorously defended in court.

“Around five months after the lease was terminated, the landlord issued an invoice for 200 per cent of the rent for the last 12 months of the lease term. It had never raised this claim previously,’’ the spokesman said.

“R.M.Williams at all times paid 100 per cent of the rent under the agreement.

“R.M.Williams does not owe anything further.

“We cannot allow this unreasonable claim to go unchallenged, when we have complied with our obligations and the landlord is claiming double rent.”

Originally published as R.M. Williams’ former Adelaide landlord says billionaire-backed firm is bullying him in rent stoush