New Zealand Case Law: Decisions & Judgments

Topic

Lease interpretation

Legal area

Court

18 Sept 2023

RONGOTAI INVESTMENTS LIMITED v BLAYLOCK [2023] NZHC 2599

Citation

[2023] NZHC 2599
Court

High Court

The Court held that Rongotai advanced a tenable interpretation that clause 3 either objectively requires rent to be calculated by reference to the correct/final Government Valuation (with retrospective effect) or that an implied term to that effect is necessary to give business efficacy; consequently the defendants failed to prove on the balance of probabilities that the plaintiff's first three causes of action cannot succeed and the strike out threshold was not met; similarly the pleaded undertaking/agreement dated 29 April 2021 against the Blaylock Interests was tenable and not appropriate…
18 Jul 2023

PAROS PROPERTY TRUST LIMITED v SMITH [2023] NZHC 1873

Citation

[2023] NZHC 1873
Court

High Court

The Court held that the rent review must proceed in accordance with s152(3) of the Municipal Corporations Act 1954 (valuation by three independent persons), that time was not of the essence for the rent review, that Paros acted within a reasonable time after the Court of Appeal decision and is not estopped from conducting a new review, and therefore the Court will supervise the appointment of valuers and set a timetable to determine the rental for the period commencing 14 November 2018.
21 Dec 2022

TAURANGA CROSSING LTD v TAURANGA ADT LTD [2022] NZHC 3576

Citation

[2022] NZHC 3576
Court

High Court

Summary judgment was declined because the defendants demonstrated reasonably arguable defences: ambiguity and genuine dispute as to rent calculation (including whether the 8% GOC wash-up for the period to lease cancellation yields nil rent), reasonably arguable defences to liquidated damages given Covid-19 restrictions, landlord communications and proportionality/penalty concerns, and uncertainty as to the correct 12‑month period for the guarantor cap—all issues requiring full hearing and factual inquiry.
21 Sept 2022

SMITH v PAROS PROPERTY TRUST LTD [2022] NZCA 447

Citation

[2022] NZCA 447
Court

Court of Appeal

Clause 23 interpreted objectively requires the lessor to cause a valuation and allows the lessor to select the valuer; a lessee may remit a reasonable pre-estimate of valuation costs to trigger the process but cannot unilaterally appoint and mandate a valuer absent a binding variation; no binding oral variation was established; respondent did not repudiate or breach so cancellation was unjustified; because the lease was expressly granted pursuant to the URHI Act the Local Government Act s231(2) deeming to the Public Bodies Leases Act did not apply and the Municipal Corporations Act s152(3) th…
9 Mar 2022

PAROS PROPERTY TRUST LTD v SMITH [2022] NZHC 408

Citation

[2022] NZHC 408
Court

High Court

Costs were not reserved pending appeal; clause 14(b) of the lease authorized recovery of indemnity costs because the defendants were in breach by failing to pay rent, but the claimed solicitor-client indemnity amount was not objectively reasonable in the circumstances; therefore costs were awarded on a 2B basis with reductions for excessive second counsel involvement and duplicate attendances, resulting in an award of $54,014 plus published disbursements.
2 Mar 2022

ROAD RUNNER 2012 LIMITED v MEMELINK [2022] NZHC 346

Citation

[2022] NZHC 346
Court

High Court

The High Court held the District Court judgment was final on the respondents' claim (including outgoings); the invitation at [37] of the District Court judgment to reframe and relitigate outgoings was inconsistent with the final judgment and would breach the rule in Henderson v Henderson; there was no valid split trial order under rr 10.12 or 10.21 and the respondents cannot pursue further proceedings on outgoings in the District Court proceeding as decided.
14 Dec 2021

MJ & KIMKO COMPANY LTD v JNJ HOLDINGS LTD [2021] NZHC 3451

Citation

[2021] NZHC 3451
Court

High Court

Costs reduced by 50% and respondent ordered to pay specified costs because appellants pursued arguments that were not focussed on the pleaded agreement to lease and relied on irrelevant lease documents, thereby contributing unnecessarily to time and expense and justifying reduction under r 14.7(f)(ii) and r 14.7(g).
19 Aug 2021

PAROS PROPERTY TRUST LIMITED v SMITH [2021] NZHC 2163

Citation

(2021) 22 NZCPR 422
Court

High Court

Clause 23 is to be construed so that the lessor is responsible for 'causing a valuation to be made'; the lessees' 26 April 2018 notice was not validly given and there was no binding agreement with the property manager to vary the process; the lessor did not repudiate the lease and cancellation by defendants was unjustified; rent review under the Public Bodies Leases Act produced a new annual rent ($81,375) and arrears amounting to $237,625; Ms Shaw remains liable to the landlord but is entitled to indemnity from Mr Smith under the Deed of Delegation and Indemnity from 20 August 2017.
18 Mar 2021

COFFEE CULTURE FRANCHISES LIMITED v HOME STRAIGHT PARK TRUSTEES LIMITED [2021] NZHC 577

Citation

[2021] NZHC 577
Court

High Court

There was a substantial dispute as to liability because it was arguable that cl 27.5 was triggered by the COVID-19 emergency together with the Inland Revenue's directions reducing staff attendance, which materially prevented customers and staff accessing the premises and therefore entitled the tenant to a fair proportionate abatement of rent; as a result the statutory demand was set aside because the debt claimed was not clearly due and payable and the court could not determine the fair proportion on this application.
11 Nov 2020

STYLO MEDICAL SERVICES LTD v HUM HOSPITALITY LTD [2020] NZHC 2969

Citation

[2020] NZHC 2969
Court

High Court

On interpretation of the Deed of Lease cl 47.1 fixed the annual rent at $120,000 plus GST from 1 December 2016 and 1 February 2017 was not a rent review date; Hum is in arrears of at least $150,000 and must pay $150,000 on account within one month or the lease is cancelled and possession must be given; if paid further affidavits will determine final quantum including interest at 14% and timetable for remaining payments.