REID v ESTREICH [2022] NZHC 1433

REID v ESTREICH [2022] NZHC 1433

The defendant unreasonably withheld written consent to the assignment in breach of ss226–227 because his stated reasons lacked evidential merit and he failed to provide written consent within a reasonable time; accordingly a declaration was granted and, on causation assessed by a but‑for test, the assignees proved loss from increased mortgage interest directly attributable to the delay and were awarded $5,920 under s228; costs awarded to the plaintiffs on a category 2B basis.

Citation
[2022] NZHC 1433
Parties
First Plaintiff: Geraldine Mary Reid; First Plaintiff: Brandon Kim Reid; Second Plaintiff: Heeni Winiata Reid; Second Plaintiff: Elias John Reid; First Defendant: Stephen Noel Estreich; Second Defendant: Stephen Noel Estreich (as executor)
Court
High Court
Jurisdiction
New Zealand
Judgment Date
20 June 2022
Procedural Posture
Declaratory Judgment and Damages Under the Property Law Act 2007 (assignment of Lease) / Formal Proof Judgment on Papers After Default (application for Declaration and Damages; Minute Issued 24 May 2022; Final Judgment 20 June 2022)
Outcome
Declaration granted; damages awarded to second plaintiffs; costs awarded to plaintiffs
Legal Topics
Assignment of Lease, Unreasonable Withholding of Consent, Declaratory Relief, Damages Under S228 Property Law Act 2007, Costs
Property Law Contract Law Civil Procedure Assignment of Lease Unreasonable Withholding of Consent Declaratory Relief Damages Under S228 Property Law Act 2007 Costs

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Parties

Geraldine Mary Reid

First Plaintiff

Brandon Kim Reid

First Plaintiff

Heeni Winiata Reid

Second Plaintiff

Elias John Reid

Second Plaintiff

Stephen Noel Estreich

First Defendant

Stephen Noel Estreich (as executor)

Second Defendant

Procedural Posture

Declaratory Judgment and Damages Under the Property Law Act 2007 (assignment of Lease) / Formal Proof Judgment on Papers After Default (application for Declaration and Damages; Minute Issued 24 May 2022; Final Judgment 20 June 2022)

Legal Issues

  1. 1 Whether the lessor unreasonably withheld consent to assignment under ss226–227 Property Law Act 2007
  2. 2 Whether assignees and lessees are entitled to damages under s228 for losses caused by unreasonable withholding or delay
  3. 3 Appropriate causation test and relevance of remoteness/foreseeability

Ratio Decidendi

The defendant unreasonably withheld written consent to the assignment in breach of ss226–227 because his stated reasons lacked evidential merit and he failed to provide written consent within a reasonable time; accordingly a declaration was granted and, on causation assessed by a but‑for test, the assignees proved loss from increased mortgage interest directly attributable to the delay and were awarded $5,920 under s228; costs awarded to the plaintiffs on a category 2B basis.

Court Disposition

Declaration granted; damages awarded to second plaintiffs; costs awarded to plaintiffs

Orders

  • Declaration that Stephen Noel Estreich unreasonably withheld consent to the assignment of the leasehold interest at 6224 State Highway 1, Moerewa (Unique Identifier 42509) from Brandon Kim Reid and Geraldine Mary Reid to Heeni Winiata Reid and Elias Reid pursuant to ss226 and 227 Property Law Act 2007.
  • Order that Stephen Noel Estreich pay damages to the second plaintiffs (Heeni Winiata Reid and Elias John Reid) in the sum of NZD 5,920.