In ACN 116 746 859 v Lunapas Pty Ltd & Anor [2017] NSWSC 1583, Lunapas leased to Palermo retail premises from which Palermo operated a seafood restaurant. Lunapas wrongfully terminated the lease and re-entered the premises. After the lockout, Lunapas re-opened the premises as a new seafood restaurant and used the stock, machines and equipment belonging to Palermo.

Palermo sought damages against Lunapas for alleged wrongful conversion of the equipment which remained on the premises. The Court held that conversion was made out both at the moment of lockout and in the period after in respect of all goods. The Court rejected the defenced raised by Lunapas that conversion could not be made out because Palermo lost actual possession at the time of lockout and subsequently either abandoned or disclaimed its right to possession. The Court awarded Palermo $250,000 representing the market value of the equipment and stock converted. Read full case.

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