DILWORTH TRUST BOARD V JACK'S VENTURES LIMITED HC AK CIV-2011-404-3312

DILWORTH TRUST BOARD V JACK'S VENTURES LIMITED HC AK CIV-2011-404-3312

The express terms of the deed of lease (clauses excluding warranty of suitability, occupation at lessee's risk, and limiting quiet enjoyment to actions by the lessor or those claiming under the lessor), together with the guarantee and assignment provisions, establish that the landlord bore no liability for interruption caused by unrelated third party motorway works and that guarantors remained liable after assignment; the defendants produced no reliable evidence to contradict liability, therefore summary judgment on liability was appropriate.

Citation
openlaw-e5b82d44_7611_459b_b205_76bb0ec2192d.pdf
Parties
Plaintiff: Dilworth Trust Board; First Defendant: Jack's Ventures Limited; Second Defendant: Jack Zhou; Third Defendant: Ruiyu Lynn; Fourth Defendant: Kun Wei Chen; Fifth Defendant: Qianguan Chen; Sixth Defendant: Maharaj & Associates Limited; Seventh Defendant: Pravin Kumar Maharaj
Court
High Court
Jurisdiction
New Zealand
Judgment Date
20 March 2012
Procedural Posture
Commercial Lease Dispute Summary Judgment Application / Summary Judgment on Liability (quantum Reserved for Further Hearing)
Outcome
Summary judgment on liability entered against all defendants
Legal Topics
Lease Assignment, Guarantee Liability, Quiet Enjoyment Covenant, Summary Judgment, Rent Review, Misleading and Deceptive Conduct, Outgoings, Quantum for Unpaid Rent and Damages
Property Law Contract Law Commercial Law Civil Procedure Consumer Protection Lease Assignment Guarantee Liability Quiet Enjoyment Covenant +5 more

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Parties

Dilworth Trust Board

Plaintiff

Jack's Ventures Limited

First Defendant

Jack Zhou

Second Defendant

Ruiyu Lynn

Third Defendant

Kun Wei Chen

Fourth Defendant

Qianguan Chen

Fifth Defendant

Maharaj & Associates Limited

Sixth Defendant

Pravin Kumar Maharaj

Seventh Defendant

Procedural Posture

Commercial Lease Dispute Summary Judgment Application / Summary Judgment on Liability (quantum Reserved for Further Hearing)

Legal Issues

  1. 1 Whether defendants have a defence to liability for unpaid rent and outgoings after assignment
  2. 2 Whether guarantors (second to fifth defendants) remained liable after assignment
  3. 3 Whether landlord was liable for interruption caused by third party motorway works

Ratio Decidendi

The express terms of the deed of lease (clauses excluding warranty of suitability, occupation at lessee's risk, and limiting quiet enjoyment to actions by the lessor or those claiming under the lessor), together with the guarantee and assignment provisions, establish that the landlord bore no liability for interruption caused by unrelated third party motorway works and that guarantors remained liable after assignment; the defendants produced no reliable evidence to contradict liability, therefore summary judgment on liability was appropriate.

Court Disposition

Summary judgment on liability entered against all defendants

Orders

  • Summary judgment on the issue of liability entered against each defendant
  • Defendants to pay costs to the plaintiff on a single 2B basis together with disbursements as fixed by the Registrar, jointly and severally liable to the plaintiff