Question regarding a sublease agreement between the Bunbury Car Club and Speedworx Pty Ltd, and the City of Bunbury's involvement and potential liability. The City denies liability and states the Car Club is responsible for its own insurance.

AnsweredQoN 2687Legislative Assembly
Asked
18 September 2007
Portfolio
Local Government

QuestionView source ↗

(a) did the lease signed by Bunbury City Council and Bunbury Car Club in 2003 allow subleasing of the land to Speedworx Pty Ltd, and
(i) if so, what conditions were placed on, or written into, the sublease;
(b) were the conditions in the sublease fulfilled, and
(i) if not, which conditions were not fulfilled and which party failed to fulfil those conditions;
(c) did the City of Bunbury take any action with regards to any failure to fulfil obligations under that lease, and
(i) if so, what actions were taken;
(d) what liability is accepted, or alleged as applying to Bunbury City Council, in relation to any failure to fulfil obligations under the lease or sublease; and
(e) does liability insurance held by the City of Bunbury extend to the Bunbury Car Club in relation to these actions, and
(i) if not, why not?

AnswerView source ↗

Answered
16 October 2007
Responded by
Minister representing the Minister for Local Government
Response time
28 days
The City of Bunbury has advised the following:
(a) and (i) The Council agreed at its meeting on 23 September 2003 to allow Speedworx Pty Ltd to enter into a formal sub-lease with the Bunbury Car Club. Full details of the decision and conditions placed on the sublease are recorded in the Minutes of the meeting which are publicly available on the City of Bunbury website at
www.bunbury.wa.gov.au
(b) and (i) The Council's Solicitor prepared the draft sub-lease document and the document was issued to the two parties. The two parties are in dispute in respect to sub-lease issues.
(c) and (i) Yes, the Council has liaised extensively with the two parties and at Council's cost, initiated mediation through Solicitors McLeod's, however, the matters are still not resolved.
(d) None
(e) and (i) No, because the Bunbury Car Club is required to have its own insurance under the head lease.
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