IAN THOMAS HAMILTON BLAKEMAN AND CRAIG MAURICE JOHNSTON v GENERAL DISTRIBUTORS LIMITED [2014] NZHC 2169

IAN THOMAS HAMILTON BLAKEMAN AND CRAIG MAURICE JOHNSTON v GENERAL DISTRIBUTORS LIMITED [2014] NZHC 2169

Clause 2.4 requires that one of the specified trigger events must have occurred prior to the sublessee giving notice; the sublease therefore expired on its clear final expiry date of 1 August 2014; GDL's notice of 20 January 2014 was not a valid exercise of cl 2.4 rights; no implied term to allow holding over until 6 December 2014 could be implied; Trust entitled to immediate vacant possession and declarations sought.

Citation
[2014] NZHC 2169
Parties
Plaintiff Trustee: Ian Thomas Hamilton Blakeman; Plaintiff Trustee: Craig Maurice Johnston; Defendant Sublessee: General Distributors Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
9 September 2014
Procedural Posture
Declaratory Judgment; Summary Judgment Application / High Court Judgment on Summary Judgment Application
Outcome
Declarations granted for plaintiffs; summary judgment for plaintiffs; Trust entitled to immediate vacant possession; costs awarded to Trust on a 2B basis
Legal Topics
Lease Interpretation, Right of First Refusal, Implied Terms, Vacant Possession, Summary Judgment
Property Law Contract Law Civil Procedure Lease Interpretation Right of First Refusal Implied Terms Vacant Possession Summary Judgment

Case Brief

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Parties

Ian Thomas Hamilton Blakeman

Plaintiff Trustee

Craig Maurice Johnston

Plaintiff Trustee

General Distributors Limited

Defendant Sublessee

Procedural Posture

Declaratory Judgment; Summary Judgment Application / High Court Judgment on Summary Judgment Application

Legal Issues

  1. 1 Whether GDL was entitled to give notice under cl 2.4 before any trigger event had occurred
  2. 2 Whether the sublease final expiry date of 1 August 2014 should be read as extending to 6 December 2014 in circumstances where trigger events remained undecided
  3. 3 Whether an implied term should allow GDL to hold over until 6 December 2014 if notice was given and trigger events remained undecided

Ratio Decidendi

Clause 2.4 requires that one of the specified trigger events must have occurred prior to the sublessee giving notice; the sublease therefore expired on its clear final expiry date of 1 August 2014; GDL's notice of 20 January 2014 was not a valid exercise of cl 2.4 rights; no implied term to allow holding over until 6 December 2014 could be implied; Trust entitled to immediate vacant possession and declarations sought.

Court Disposition

Declarations granted for plaintiffs; summary judgment for plaintiffs; Trust entitled to immediate vacant possession; costs awarded to Trust on a 2B basis

Orders

  • Declaration that GDL has not validly exercised any rights pursuant to cl 2.4 of the sublease
  • Declaration that GDL has no extant rights under cl 2.4 of the sublease