New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Section 120 property law act 1952

Legal area

Court

5 Dec 2005

PONSONBY MALL TRUST LIMITED AND CRIMMER TRADING TRUST LIMITED V NEW ZEALAND FOOD INDUSTRIES LIMITED HC AK CIV-2005-404-3631

Citation

openlaw-03a8f949_575a_4867_8ba2_117c669ad709.pdf
Court

High Court

The Court exercised its wide discretion under s 120 to order the lessor to grant the defendant the two renewals to 30 June 2006 because the lessee's failure to give notice was inadvertent and bona fide, the lessee would suffer very substantial and potentially irreparable prejudice (closure of NZ operations, immediate revenue loss and loss of market share), third parties would be detrimentally affected, the lessor's prejudice was limited to loss of a commercial opportunity which is not a bar to relief, and no exceptional uncompensable prejudice to the lessor justified refusal; relief granted o…
5 Dec 2005

PONSONBY MALL TRUST LTD & ANOR V NZ FOOD INDUSTRIES LTD HC AK CIV-2005-404-3631

Citation

openlaw-b5d65cf2_0607_4718_b75d_147e6a57b008.pdf
Court

High Court

NZFI's failure to renew was an inadvertent administrative error; denial of relief would cause very substantial prejudice to NZFI and innocent third parties while the lessor's prejudice was limited to losing the opportunity to exploit the mistake (which s120 is designed to prevent); accordingly the court exercised its wide discretion under s120 to order a renewal to 30 June 2006 on the original lease terms and declined to impose financial compensation beyond payment of arrears.