Landlords’ ability to sue retail tenants’ guarantors at VCAT to be clarified

The bill will also amend the Retail Leases Act 2003 to allow the tribunal to make orders against a guarantor or indemnifier of a tenant’s obligations under a retail premises lease and will allow a guarantor or indemnifier to refer a retail tenancy dispute to the small business commissioner for mediation. These amendments will allow parties involved in retail tenancy disputes to have their issues comprehensively addressed by mediation and, should it be necessary, at the tribunal, without the expense of a separate court proceeding.

The Tribunal’s jurisdiction is not exclusive. At this stage, landlords will still be able to sue guarantors in a court if they elect to do so.

The second reading speech for the bill took place on 24 June 2014.