TURRALL v JACKSON [2018] NZHC 2370

TURRALL v JACKSON [2018] NZHC 2370

The Court granted summary judgment against the former lessees (Jackson, Letica, Fox and Fox) for outstanding rent $662,729.86, insurance premiums $52,151.05 and interest to 3 February 2016 $241,751.85 and awarded contractual default interest at 20% p.a. from 4 February 2016 to date, holding that (a) the deeds of...

Source-derived case information.

Citation
(2018) 20 NZCPR 1
Parties
Plaintiff: John Graham Turrall; Plaintiff: ButlerTrustees (2014) Limited; First Defendant: Bryan Lee Jackson; Second Defendant: Karen Letica; Third Defendant: Maegan Jane Fox; Fourth Defendant: Donald Andrew Fox; Fifth Defendant: Graham David Millier; Sixth Defendant: Janet Elizabeth Millier; Third Party: Brian Graham Bluett; Third Party: Todd Graham Bruce Bluett
Court
High Court
Jurisdiction
New Zealand
Judgment Date
10 September 2018
Procedural Posture
Lease / Landlord Tenant Debt Recovery and Enforcement / Summary Judgment Application (high Court)
Outcome
Summary judgment entered for plaintiffs against first to fourth defendants; summary judgment against fifth and sixth defendants dismissed
Legal Topics
Summary Judgment, Assignment of Lease, Deed of Covenant, Guarantee Enforcement, Mitigation of Loss, Property Law Act S233/s245, Fair Trading Act S9, Post Judgment Interest, Cancellation of Lease, Charging Orders
Property Law Contract Law Landlord and Tenant Civil Procedure Guaranty and Indemnity Statute Interpretation Summary Judgment Assignment of Lease +8 more

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Parties

John Graham Turrall

Plaintiff

ButlerTrustees (2014) Limited

Plaintiff

Bryan Lee Jackson

First Defendant

Karen Letica

Second Defendant

Maegan Jane Fox

Third Defendant

Donald Andrew Fox

Fourth Defendant

Graham David Millier

Fifth Defendant

Janet Elizabeth Millier

Sixth Defendant

Brian Graham Bluett

Third Party

Todd Graham Bruce Bluett

Third Party

Procedural Posture

Lease / Landlord Tenant Debt Recovery and Enforcement / Summary Judgment Application (high Court)

Legal Issues

  1. 1 Whether former assignees remain liable under deeds of covenant for rent/outgoings incurred by later assignees
  2. 2 Whether purchaser of land after landlord obtained cancellation of lease can enforce covenants of earlier lease via Property Law Act s233
  3. 3 Whether guarantors (Milliers) were liable under deed of guarantee and whether contractual notice/demand preconditions were met

Ratio Decidendi

The Court granted summary judgment against the former lessees (Jackson, Letica, Fox and Fox) for outstanding rent $662,729.86, insurance premiums $52,151.05 and interest to 3 February 2016 $241,751.85 and awarded contractual default interest at 20% p.a. from 4 February 2016 to date, holding that (a) the deeds of covenant imposed continuing liability subject to limitation, (b) Property Law Act s233 did not bar the Trust because the lease had been cancelled before sale so no reversion expectant existed for a purchaser to step into, (c) mitigation and Fair Trading Act defences did not raise an arguable defence on these facts, but (d) summary judgment against the Milliers was dismissed...

Court Disposition

Summary judgment entered for plaintiffs against first to fourth defendants; summary judgment against fifth and sixth defendants dismissed

Orders

  • Judgment entered against Bryan Lee Jackson, Karen Letica, Maegan Jane Fox and Donald Andrew Fox for outstanding rent $662,729.86, outstanding insurance premiums $52,151.05 and interest to 3 February 2016 $241,751.85
  • Contractual default interest at 20% per annum awarded on the rent and insurance sums from 4 February 2016 to date of judgment