New Zealand Case Law: Decisions & Judgments

Topic

Glasgow lease

Legal area

Court

30 Mar 2021

SAI LOUIE and CREAGH v PENGELLY’S PROPERTIES LIMITED [2021] NZHC 663

Citation

[2021] NZHC 663
Court

High Court

Clause 16 incorporated s 22 PBLA into the lease, and when read in its contractual context 'the leasing authority' in that incorporated text means the lessor for the time being (regardless of whether that lessor is a statutory leasing authority); therefore Pengelly, as current lessor, validly initiated the 2018 rent review and the Partnership is bound to pay rent in accordance with the arbitration award dated 5 November 2018.
14 Oct 2019

LUSTY and BROWNE as executors of the Estate of Kenneth Richard Lusty v C M THORBURN and C E THORBURN as trustees of the THORBURN TRUST [2019] NZHC 2610

Citation

[2019] NZHC 2610
Court

High Court

The plaintiffs' summary judgment application was dismissed because it is arguable the lease was granted in breach of the trustee's duties by a grossly inadequate and capped rent that could operate in perpetuity, the adequacy of consideration paid is not established, and there are significant factual issues (including knowledge and dealings between the parties and solicitors' involvement) requiring trial rather than summary disposal.
30 Apr 2019

SALTBURN HOLDINGS LIMITED v PENROSE LEASEHOLD LIMITED [2019] NZCA 127

Citation

[2019] NZCA 127
Court

Court of Appeal

The Court refused special leave because Saltburn's proposed appeal lacked sufficient merit and a realistic prospect of success: Downs J correctly applied established leave criteria; the arbitrator's approach equating upset annual rent with fair annual rent was supported by statute, authority and common sense; valuation methodology and the 6.5% rental factor were matters of expert fact and established practice; further appeal would cause undue delay and prejudice to the respondent.
31 May 2018

SALTBURN HOLDINGS LTD v PENROSE LEASEHOLD LTD [2018] NZHC 1246

Citation

[2018] NZHC 1246
Court

High Court

The term 'upset annual rent' in Schedule 2 of the Public Bodies Leases Act 1969 is to be read as synonymous with the fair annual rent determined under that schedule (ie a reserve figure determined by established valuation methods); applying that legal test, the arbitrator did not err in law and leave to appeal is refused due to low prospects of success and the binding arbitration regime.
16 Feb 2017

MYKONOS PROPERTY TRUST LIMITED v BIRD [2016] NZHC 173

Citation

[2016] NZHC 173
Court

High Court

Applying the lease terms and statutory test, and on expert evidence using the traditional approach, a ground rental factor of 5.75% on an assessed land value of $525,000 produces a fair annual rent; the lessee's inability to pay or market rent for the whole improved property does not displace the statutory test; therefore landlord entitled to possession, lease cancellation and associated monetary relief.
28 Nov 2016

BRIAN GREEN PROPERTIES (1971) LIMITED v BINDON HOLDINGS LIMITED [2016] NZHC 2847 [28 November 2016]

Citation

[2016] NZHC 2847
Court

High Court

The Court found BGPL to be the predominantly successful party because although there was a technical breach of the repair covenant, the breach presented no immediate or material financial risk to Bindon given the Glasgow lease rent structure and the tenant's solvency; accordingly costs were awarded to BGPL on a 2B scale but discounted by 25% resulting in a total award of $18,680.93; costs of the aborted arbitrator appointment were to lie where they fell; the Court declined to vary the previously fixed security amount of $1,549,000.
25 Aug 2016

BRIAN GREEN PROPERTIES (1971) LIMITED v BINDON HOLDINGS LIMITED [2016] NZHC 1993

Citation

(2016) 17 NZCPR 637
Court

High Court

The lease executed 27 April 2009 created a new lease commencing 1 October 2008; clause 11 of the lease excluded the operation of s 223 PLA so the lessee's repair covenant is governed by the express covenant and ordinary principles of construction; many defects identified fall within the lessee's repair obligations; Bindon's s 246 notices were valid; nevertheless, because BGPL is solvent, continued payment of rent and there is no irreparable loss to Bindon, the Court exercised its discretion under s 253 PLA to grant relief against cancellation on conditions: BGPL must remedy the covenant withi…
14 Mar 2016

THE CORNWALL PARK TRUST BOARD INC v CHEN [2016] NZCA 65

Citation

[2016] 2 NZLR 637
Court

Court of Appeal

Clause 13(t) was correctly interpreted to obligate an outgoing lessee who remains in possession to pay a rental calculated on the basis of the upset rent from the date of expiry while the valuation/renewal/auction processes are pending, irrespective of whether a new lease is ultimately granted; the Board was not estopped from claiming the upset rent; clause 17 negated implied statutory repair exceptions under the Property Law Act 1952; the lessee breached express repair covenants and the Board may recover reasonable cost of remediation under the prima facie Joyner v Weeks measure of damages.
11 Mar 2016

MUIR v TIEU [2016] NZHC 422

Citation

[2016] NZHC 422
Court

High Court

For Glasgow leases where rent is fixed as a percentage of the fee simple, the valuation of the fee simple is to be made by reference to the value of the land and not by importing lease restrictions (including subdivision restrictions); clauses 11.2 and 11.3 do not require accounting for the lease's subdivision restriction and Mandic applies.
8 Oct 2014

THE CORNWALL PARK TRUST BOARD INC v CHEN [2014] NZHC 2465

Citation

[2014] NZHC 2465
Court

High Court

Clause 13(t) is to be read in its statutory and contractual context and does not impose liability on a lessee to pay backdated upset rent where no new lease is granted (including where the lease fails to sell at auction and improvements revert under clause 13(w)); however the lessee breached express repair covenants (clauses 5 and 7) and is liable for the reasonable cost of putting the premises into the state they ought to have been in at yield up, quantified by the Board's incurred remediation costs.