Pharmacy Daily | CWH switch sparks WA court battle

A DISPUTE over a Western Australian property developer's decision to drop Wizard Pharmacy CEO, Lyndon Dyson, as a tenant for a pharmacy at a yet-to-be-built medical centre in favour of Chemist Warehouse (CWH) is set to be tried in the Supreme Court of WA.

Dyson has applied for an extension of caveat over the property which he had agreed to lease from developer, Ian Johnson.

An in-chambers hearing was told Dyson and Johnson had discussed the possibility of setting up a new pharmacy in Kalgoorlie-Boulder in Jan 2015, with the Wizard Pharmacy founder noting the new store would need a Pharmaceutical Benefits Scheme (PBS) number, which would require it to be allied to a medical centre.

Negotiations between Dyson and Johnson continued through to Jan 2018, when the pharmacist introduced Dr Jaggadish Krishnan to the developer as the doctor required to set up the medical centre.

In Feb 2018 Johnson's solicitor sent a suite of documents including an agreement of lease between Dyson's Sommerville Kalgoorlie Pty Ltd, as the tenant, and the developer's Gullan Pty Ltd entity.

However, in Jan 2020 Johnson informed Dyson that although the development of the land was proceeding he did not intend to grant the pharmacy lease to Sommerville, but instead proposed to grant a lease to CWH.

An affidavit presented by Dyson noted the "agreement for lease dated in or about 2018 between the registered proprietor as lessor and the caveator as lessee for a term of five years commencing on the date of practical completion of the building being constructed or to be constructed on the land described together with two option terms each of five years".

Johnson claimed the agreement for lease had been terminated on non-fulfilment of a condition contained in the contract, that he obtain financing for the development, within a 60-day timeframe.

Johnson said his bank had told him it was not prepared to finance the project at the time.

Following the hearing it was ruled that the matter should be progressed to trial as soon as possible.