Brewery feud bubbles over with court bid

Margaret River-based Cheeky Monkey Brewing Co has taken its new landlord to court in an eleventh-hour bid to stop them from repossessing the premises amid a feud over the lease.

Cheeky Monkey has occupied the site since 2012, holding a lease with the former owner until the site was sold in December last year to Wilyabrup Investments, a company spearheaded by Contact Hair Services managing director and a former director of Perth property development company DG Corp, Mario De Felice.

According to a writ lodged in the Supreme Court this week, Cheeky Monkey claims the new owner had agreed to adopt the previous leases with only minor variations, including a deed which allowed the business to use a paved car park and two further areas for overflow. 

But on December 2, Wilyabrup Investments wrote to the business claiming the brewery and restaurant leases it held did not grant the right to use any areas for parking except the paved car park.

In the letter, the landlord claimed the overflow arrangement was never formally approved by the City of Busselton and that its use constituted a breach of the lease agreement.

Further, the landlord claimed Cheeky Monkey was in breach of the brewery lease because it was using the premises to operate a tavern without the landlord’s consent.

Wilyabrup Investments demanded the business comply with the notice within a fortnight or face eviction, the termination of the lease and a court action for costs.

But in the writ, Cheeky Monkey refuted the allegations, claiming it had consent to use the premises as a tavern and the city had issued a notice to confirm it was complying with all local laws.

Further, it alleged Wilyabrup Investments knew the company held a tavern licence and was using the brewery as a tavern.

Cheeky Monkey claimed the landlord was not entitled to terminate the business’s rights under the licence in relation to overflow parking.

The brewery business has now taken the matter to the Supreme Court, seeking an injunction to prevent Wilyabrup Investments from acting on its threat to repossess the venue and terminate the leases if it does not comply with its demands by today.

Cheeky Monkey has sought declarations confirming the use of the brewery as a tavern is permitted under the lease, the car parking default notice is invalid and that any attempt to terminate its right to use the overflow carparks cannot take effect.

The matter is listed for a special appointment this afternoon.

Cheeky Monkey declined Business News’ request for comment.