What happened:
Capree lawyers acted for tenant and the guarantor
On 27 March 2026, the landlord issued a further default notice
. On 6 May 2026, the landlord commenced a new VCAT proceeding (BP711/2026) against the tenant and the guarantor, seeking possession of the premises and other relief arising from the alleged failure to remedy the breaches specified in the March 2026 default notice
. An injunction hearing was listed for 26 May 2026
What capree lawyers did
13–14 May 2026 — Without-prejudice settlement offers
Immediately upon receiving the VCAT application, Capree Lawyers wrote to the landlord’s solicitors on 13 May 2026 and again on 14 May 2026 with two formal settlement offers made on a Calderbank basis :
Offer 1 — Lease remains on foot:
- Rent from 22 May 2026 to be paid on 28 May 2026;
- Payment of $15,000 by 15 June 2026 and the balance of $16,397.44 by 5 July 2026;
- The lease to remain on foot;
- The client to sell the business within three months with the landlord agreeing to a transfer of lease to the purchaser;
- VCAT application dismissed with each party bearing its own costs .
Offer 2 — Tenant vacates:
- Vacant possession to be delivered by 10 June 2026;
- The landlord to apply the full security deposit of $25,404.30 in full and final settlement;
- VCAT application dismissed with each party bearing its own costs;
- Mutual releases .
Both offers were expressly made on Calderbank principles, with the tenant reserving the right to seek indemnity costs from the date of the letter if the offers were rejected .
Acceptance and deed negotiations
The landlord accepted Offer 2 on 15 May 2026 . Capree Lawyers then engaged in negotiations over the terms of the deed of settlement, resisting attempts by the landlord to impose additional exit obligations beyond those agreed removal of fixtures.
The Deed of Settlement was executed on 25 May 2026 by all parties (the landlord, the tenant, and the guarantor). Its key terms were:
- The landlord was irrevocably authorised to apply and retain the security deposit of $25,404.30 in full and final settlement of all claims ;
- The tenant was required to deliver vacant possession of the premises by 5:00 PM on 10 June 2026, including removal of fixtures and fittings, cleaning, and return of all keys ;
- The landlord was authorised to advertise the premises for lease immediately upon execution, with access on not less than two business days’ written notice ;
- If the tenant failed to vacate within seven days of the deadline, the landlord could apply to VCAT for possession orders, and the tenant and guarantor consented in advance to such orders and agreed not to oppose or seek relief against forfeiture ;
- Mutual releases on a no-admissions basis in respect of all claims arising from the default notice, the lease, the premises, the tenant’s occupation, and the VCAT application ;
- Each party to bear its own legal costs ;
- Confidentiality obligations .
The deed was witnessed by Vivek Anand of Capree Lawyers .
25 May 2026 — Consent orders filed and made
On the same day, Capree Lawyers and the landlord’s solicitors filed minutes of proposed consent orders in BP711/2026. The Tribunal ordered by consent:
- The proceeding be dismissed with a right of reinstatement;
- No order as to costs .
What capree lawyers did for the client:
- Immediate strategic response – no delay as seen in facts
- Full and final settlement on the client’s terms
- Limited exit obligations
- Proceeding struck out
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