Put it in writing or lose it!

We previously wrote an article about The Returned & Services League of Australia (Queensland Branch) Southport Sub-Branch Inc (RSL) having difficulties with leasing some rooms in The Southport RSL Memorial Club Inc (Club).

A recent case on the other side of Australia is another timely warning about documenting agreements for using premises on land you may not technically own and keeping them safe for future reference.

The Returned & Services League of Australia WA Branch Incorporated (RSLWA) is a century-old organisation supporting current and ex-serving Australian Defence Force personnel. It was the owner of the land subject to a crown lease (the Property), which required it be used ‘solely for the purpose of a “Hallsite” (R.S.L)’.

The Nollamara RSL Sub-Branch was founded in 1969 as a sub-branch of RSLWA. The Sub-Branch occupied a hall on the Property with the consent of RSLWA until 6 February 2024.

In 1996, some form of ‘arrangement’ was made for Vietnam Veterans and Veterans Motorcycle Club WA Chapter (Inc) (VMC) to construct a building on the Property. VMC is a motorcycle club for veterans of the Vietnam War. VMC constructed a building (Clubhouse) adjacent to the hall and occupied it for about 27 years. VMC contended that it had a lease or contractual licence until 2046.

In 2024, RSLWA unanimously resolved to revoke the Sub-Branch’s charter, take possession of the Property, and change the locks.

Soon afterwards, VMC removed the locks at the Clubhouse placed by RSLWA and re-took possession.

After exchanging correspondence, RSLWA approached the Court seeking declaratory relief and injunctions requiring VMC to vacate the Property, and restraining VMC from re-entering without RSLWA’s written consent.

VMC contended that it had a lease or contractual licence until 2046. The Court determined that VMC and the Sub-Branch had reached an agreement about the clubhouse, but a copy could not be found. Secondary sources could establish some terms of the agreement.

The Court found that VMC had enjoyed its right of occupation as a tenant at will, and RSLWA was entitled to terminate that tenancy without notice.

VMC were trespassing on the Property in the Clubhouse that they had built.

The Court granted the application.

This case is a timely reminder that where there is physical co-location of nonprofit organisations, there should be written agreements as to the terms, and they should be safely secured for further reference.

Large membership bodies with equally extensive land holdings and bank balances were generous in allowing all sorts of other nonprofit organisations and services to co-locate on their properties. However, as their memberships and fortunes decline, property rationalisations are being contemplated or forced upon them at an alarming rate; what once seemed a perpetual arrangement may now need to be undone.