New Zealand Case Law: Decisions & Judgments

Topic

Repair covenants

Legal area

Court

13 Jul 2022

THE GAMA FOUNDATION v FLETCHER STEEL LIMITED [2022] NZCA 314

Citation

[2022] NZCA 314
Court

Court of Appeal

The Court granted special leave only on the discrete legal questions concerning the application and scope of the rule in Joyner v Weeks (including whether it precludes recovery of reasonable mitigation costs and who bears the onus), but refused leave on Gama's arguments regarding clause 5.1 and clause 14.1 as not reasonably arguable given established authority and the arbitrator's findings.
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.
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.
3 Oct 2014

STYLO MEDICAL SERVICES LIMITED v HUM HOSPITALITY LIMITED [2014] NZHC 2428

Citation

[2014] NZHC 2428
Court

High Court

Relief from cancellation was granted conditionally: the tenant must pay all outstanding rent (exclusive of interest) and outgoings within 15 working days; if payment is not made the lease is cancelled and possession ordered. The tenant's misrepresentation case is undermined by express 'as is' and disclaimer clauses in the agreements and lease, and absent payment of arrears it would be unjust to grant relief simply because the tenant undertook substantial improvements.
7 Feb 2014

AUCKLAND WATERFRONT DEVELOPMENT AGENCY LIMITED v MOBIL OIL NEW ZEALAND LIMITED [2014] NZHC 84

Citation

(2014) 15 NZCPR 391
Court

High Court

The 'clean and tidy' clause did not impose an obligation on Mobil to remediate historic subsurface contamination to restore the sites to their 1920s condition; the obligation is measured by reference to the land's condition and the class of tenant likely to occupy it at lease commencement (industrial use in 1985), and no implied remediation term was warranted.

New Zealand Case Law

THE GAMA FOUNDATION v FLETCHER STEEL LIMITED [2022] NZCA 314

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

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

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

STYLO MEDICAL SERVICES LIMITED v HUM HOSPITALITY LIMITED [2014] NZHC 2428

AUCKLAND WATERFRONT DEVELOPMENT AGENCY LIMITED v MOBIL OIL NEW ZEALAND LIMITED [2014] NZHC 84