A popular barbecue and burger restaurant in Ocean Grove has claimed it suffered a staggering $150,000 in losses due to allegedly hidden electrical faults. The owners of Smokey Soul BBQ and Burger say they were unaware of the serious electrical issues when they leased the premises, leading to a costly legal battle.
Alleged hidden faults
The restaurant's owners allege that the electrical problems were concealed by the property's previous tenant and the landlord. They claim that the faults caused repeated power outages, equipment damage, and forced closures, severely impacting their business operations.
According to court documents, the electrical issues included faulty wiring and inadequate power supply, which were not disclosed during the lease negotiations. The owners argue that they would not have taken on the lease had they known about the problems.
Financial impact
The financial toll has been substantial, with the owners estimating losses of $150,000 from lost revenue, repair costs, and legal fees. They have taken the matter to the Victorian Civil and Administrative Tribunal (VCAT), seeking compensation from the landlord and the previous tenant.
Smokey Soul BBQ and Burger, known for its smoked meats and gourmet burgers, opened in Ocean Grove in 2021 and quickly gained a loyal following. However, the ongoing electrical issues have threatened its viability.
Legal proceedings
The case highlights the importance of thorough property inspections before signing a lease. The owners' legal team argues that the landlord failed to maintain the property in a safe and functional condition, breaching lease agreements.
The landlord has denied the allegations, claiming that the electrical faults were not hidden and that the restaurant owners were aware of some issues. The matter is set to be heard at VCAT later this year.
Local business owners have expressed sympathy for Smokey Soul BBQ, noting that hidden defects can cripple small businesses. The outcome of this case could set a precedent for commercial lease disputes in Victoria.
