Crema Espresso ordered to pay $160k to former Bundall landlord after years-long court battle

A now-closed Gold Coast coffee outlet has been ordered to cough up the whopping sum after a long and bitter legal battle with its former landlord. FIND OUT WHY

The Crema Espresso coffee shop at 88 Bundall Rd.

A coffee outlet has been ordered to pay more than $160,000 after a long-running legal battle with their former Gold Coast landlord.

Crema Espresso was slapped with the hefty bill after close to four years of legal action against ex-landlord Romolo Bos, who owned the coffee outlet’s former premises at Bundall.

Crema Expresso managing director Antony Forbutt lodged a Queensland Civil and Administrative Tribunal claim in 2019, alleging a neighbouring Freedom service station – owned by Mr Bos and on his land – serving barista-made coffee breached an ‘exclusivity’ clause in their 20-year lease agreement.

The Crema Espresso coffee shop at 88 Bundall Rd which has closed

His landlord denied the allegations and reclaimed the premises in July the same year, at the time claiming he was owed $185,000 in unpaid rent.

A QCAT decision handed down last month landed in Mr Bos’ favour, finding there was no breach of the lease agreement and that he should be paid $166,655.57 in outstanding rent and outgoings plus interest.

Court documents reveal the contract stipulated the landlord – leasing the premises through Grocorp Developments Pty Ltd – must not grant any lease or licence to another business on the premises if its “predominant purpose” was barista-made coffee.

The clause did not preclude the landlord from leasing to tenants that may sell coffee products as part of their business.

Crema Expresso managing director Antony Forbutt

“If, despite the name Freedom Fuel, the primary source of income for Freedom was derived from the sale of barista coffee … then there may have been a basis for finding breach,” the decision by Members Marcus Katter, Neil Judge, and Donald McBryde read.

The tribunal also refuted claims that Mr Forbutt was induced to sign the agreement with a series of ‘misrepresentations’ – including ‘coffee exclusivity’ – due to legal negotiations clarifying the terms of the lease.

Romolo Bos Pics Tim Marsden

Documents state Mr Bos had known about and tried to negotiate repayment of the arrears for about eight months prior to serving Crema with a notice to remedy breach.

It was a week prior to the remedy date that Mr Bos repossessed the premises.

The tribunal found Mr Bos had not given Crema reasonable time to repay the money owed, but the outstanding sum did mean the coffee brand was unable to lodge a claim for estimated $500,000 fit-out costs.

Mr Bos was not awarded legal costs due to the notice to remedy not meeting statutory requirements.