New Zealand Case Law: Decisions & Judgments

Topic

Lease cancellation

Legal area

Court

19 Dec 2023

THE GENERAL TRUST BOARD OF THE DIOCESE OF AUCKLAND v VAN DE WIEL & ORS [2023] NZHC 3773

Citation

[2023] NZHC 3773
Court

High Court

The Court held that the arbitral award, having determined the contractual rent, established binding obligations without the need to be entered as a judgment for the lessor to invoke statutory remedies under the Property Law Act 2007; the lessees had not participated in arbitration, failed to remedy substantial arrears exceeding $1,000,000 and had not shown exceptional circumstances to deny relief against cancellation, so the lease was cancelled and possession granted with orders for rent, GST, costs and interest.
23 Nov 2023

HANSEN TRUST COMPANY LTD v GOODNESS BREADS LTD [2023] NZHC 3352

Citation

[2023] NZHC 3352
Court

High Court

Relief against forfeiture was granted conditional on the respondent paying $26,735.10 in clear funds by 5.00 pm on 4 December 2023; failure to pay permits the applicant to renew its cancellation application and the court accepted the landlord had incurred reasonable costs in pursuing the unpaid rent.
4 Sept 2023

TO v CHAND [2023] NZHC 2459

Citation

[2023] NZHC 2459
Court

High Court

The written lease was a valid lease; clause 2.1 authorises only storage of machinery and crushing of concrete for resale and does not permit storage of soil/clay/landfill; the landlord's s246 notices (notably the 3rd) sufficiently described the breach and consequences though the short remediation period was arguable; the tenant vacated and thereby accepted termination; the court will cancel the lease and grant possession under s244 and s251 but declines to award compensation because the landlord failed to provide reliable independent evidence of quantity of material and removal costs, reservi…
22 Aug 2023

CAISTEAL AN IME LIMITED v MOUNT CASS HOLDINGS LIMITED [2023] NZHC 2298

Citation

[2023] NZHC 2298
Court

High Court

An interim injunction was granted on a without notice basis because the applicant demonstrated an arguable case that the lease did not plainly authorise the rent increase, the balance of convenience favoured preserving the lease (risk of cancellation causing irremediable prejudice to applicant while damages would be adequate for respondent), urgency justified ex parte relief, and overall justice required preservation of the status quo pending trial.
28 Jun 2023

ACTION HELICOPTERS LIMITED v VAN ASH VENTURES LIMITED [2023] NZHC 1623

Citation

[2023] NZHC 1623
Court

High Court

Relief against cancellation under s 253 PLA granted because, even assuming a breach of clause 58, the landlord's conduct materially contributed to the impasse, the tenant offered reasonable market terms to remedy the breach, there was no evidence of significant damage to the landlord, and cancellation would be a disproportionate response; without‑prejudice negotiations were privileged and excluded from evidence.
3 Apr 2023

XU v PLANT ZERO 2006 LTD [2023] NZHC 716

Citation

[2023] NZHC 716
Court

High Court

Tenant was in clear breach of the covenant to pay rent; clause 1.1 precluded set-off or abatement; tenant failed to establish entitlement to relief or demonstrate ability to pay outstanding arrears; accordingly court granted possession, cancelled the lease and dismissed the tenant's application for relief against cancellation, while ordering payment of arrears and interest subject to arbitration conditions.
20 Dec 2022

TAHAROTO MOTELS LIMITED v Ritz ENTERPRISES LIMITED [2022] NZHC 3553

Citation

[2022] NZHC 3553
Court

High Court

The respondent breached the lease by withholding payments into the maintenance fund; the applicant's proceedings were a direct consequence of that breach; clause 11.1.3 plainly entitles the applicant to indemnity costs and the claimed costs were reasonably incurred and reasonable in amount; accordingly indemnity costs and disbursements were ordered in favour of the applicant.
15 Dec 2022

NICOL v ALI [Costs] [2022] NZHC 3438

Citation

[2022] NZHC 3438
Court

High Court

The court held that while the lease entitled the plaintiff to recover costs and disbursements incurred remedying the lessee's default, a proportion of the claimed costs were attributable solely to an unsuccessful rent review claim; therefore the claimed amount of $19,825.09 was reduced by 25% to $14,868.82, and the court ordered payment of solicitor-client costs $14,868.82, disbursements $1,081.51 and interest $4,906.46 pursuant to s 251 Property Law Act 2007.
2 Nov 2022

PANDORA TRUSTEES LTD v P R CONTRACTING LTD [2022] NZHC 2855

Citation

[2022] NZHC 2855
Court

High Court

Arrears exceeded the statutory threshold and valid notice was served on the Crown and occupants; statutory requirements of ss 245(1) and 251(1) were satisfied, therefore the agreement to lease is cancelled and the court will order vacant possession with a five working day period after service on current occupiers.
22 Sept 2022

KOL HOLDINGS LTD v XU [2022] NZHC 2426

Citation

[2022] NZHC 2426
Court

High Court

KOL validly served s 245 and s 246 notices (including the extended COVID-19 notice period where applicable), the breaches (rent arrears and failure to insure/pay rates) were not remedied within the specified period, respondents filed no opposition or defence, and under s 244 and s 251 the Court must grant possession, cancel the lease and may order payment of outstanding rent, rates and reasonable expenses; accordingly the orders sought were made against all respondents except those with separate arrangements (third, fifth, ninth).