Bowen Investments (landlord) leased an office building in Melbourne to Tabcorp Holdings (tenant) for ten years commencing on 1 February 1997. The tenant had an option to renew the lease and, in April 2006, the parties reached an agreement on extending the lease from 1 February 2006 until 2012. An option of another extension until 31 January 2017 was also agreed. The lease included covenants to keep the premises, and to yield them up, in repair. Most importantly, the tenant covenanted not to make any substantial alteration to the premises without the landlord’s approval (cl 2.13). Early in July 1997, the landlord was informed about the tenant’s proposal to alter the foyer. The landlord wanted to see the proposed plans before giving its consent. Deciding not to wait for the approval, the tenant demolished the foyer. On 30 September 2005, proceedings were commenced in the Federal Court of Australia. Whilst there were several claims, it was the damages claim for breach of cl. 2.132 which was upheld by the Federal Court and which was the subject matter of further proceedings. The trial judge awarded $34,820 as the difference between the value of the property with the old foyer and its value with the new foyer. The majority of the Full Court of the Federal Court increased the damages award to $1.38m ($580,000 as costs of restoring the foyer and $800,000 for loss of rent for the period of restoration).