Federal Mills owners, cafe wrapped up in legal stoush

A North Geelong eatery has had almost a year of rent waived after taking its landlord to court.

The Federal Cafe. Source: Instagram

A North Geelong Geelong eatery has had almost a year of rent waived after taking its landlord to court.

VCAT ruled The Federal Cafe Restaurant Bar was entitled to have 93.86 per cent of its rent waived between March 2020 and March 2021, and 69 per cent of its rent waived between November 2021 and January 2022.

The Hamilton Group, which runs the Federal Mills complex, allegedly terminated the commercial lease in May 2021 alleging unpaid rent.

According to court documents, the landlord then took possession of the property following alleged non-compliance with the notice.

But, the cafe fought back, winning the right to re-enter the property the following month.

VCAT senior member Leneen Forde ruled while the cafe was entitled to have its debt slashed due to Covid, the Hamilton Group’s re-entry onto the premises was lawful.

“The Tenant did not pay the April 2021 rent and was not entitled to any Covid rent relief for April 2021,” she said.

“There is a long line of authority to the effect that a notice of default which requires a tenant to do something which the tenant is not required to do, but which otherwise properly refers to breaches by the tenant that have otherwise occurred, is good.”

The cafe was also granted relief against forfeiture, meaning it could stay on-site provided any outstanding debt was paid.

Lawyers for the Hamilton Group opposed the cafe being granted relief, calling the relationship between the two parties “poisonous”,

The lawyer raised issues about functions being held without proper forms, rubbish being left out and late rent.

But Ms Forde disagreed, calling many of the alleged breaches “minor in nature”.

“On the evidence before me I do not find that the Tenant’s past use of the premises to hold occasional functions was in breach of the Lease,” she said.

Any relief will be conditional upon all outstanding rent and outgoings being paid. am satisfied that there are no exceptional circumstances to justify refusing to grant relief against forfeiture on the condition that all outstanding rent and outgoings are paid.”

Originally published as Federal Mills owners, cafe wrapped up in legal stoush