THE landlord of a pharmacy in Mandurah, Western Australia, has been ordered to repay more than $42,000 in "management fees" which the State Administrative Tribunal had found it was unlawfully charging the pharmacy.
The pharmacy now trades under the Priceline brand but was previously part of the Friendlies Group, with the trustees claiming the incorrect fees were charged between Apr 2011 and Apr 2015.
The landlord also failed to review the rent on a two yearly basis as required by the lease agreement.
Walter Phillipe and Alan Hipper took the case to the tribunal, with the Mandurah Mail reporting the judge Tim Sharp ruled in their favour late last week.
The landlord had conceded that under the Commercial Tenancy Agreements Act it was required to repay the tenant $42,248,74 for management fees it had received.
The judge agreed that the rent should have been reviewed but said the tribunal did not have jurisdiction to enforce any such orders.
Small business owners were urged to seek professional advice when signing contracts with a landlord.
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