LICENSING CASE

Dominion, Volume 10, Issue 3162, 14 August 1917, Page 7

LICENSING CASE

DETERMINATION OF A LEASE

AN UNUSUAL APPLICATION.

A Bitting of tho Licensing Bench was held yesterday morning to consider an application lmido by the owners of the tieehold of the New Zenlandcr Hotel, Manners Street, for the transfer of the license of the hotel from Frank Herbert Ihillips to Mrs. Sullivan, ono of tho owners of the freehold, upon the grounds' that the Tease had been determined because ot non-payment of reijt, and also lor various breaches of tlie covenants of the lease in connection with tho conduct of the hotel. The notice to quit to Mrs. fhilhps. the lessee,' was aa follows:— (1) I hat you havo failed for more than sevon days to pay tho rent payable under the said memorandum of lease, having failed to pay tho same for seven days; (2) that you have parted with the licenso of tho said hotel to Frank Phjlnps, who 16 not the occupier of the said hotel for the time being within the meaning of the said memorandum of lease; (3) that the said Frank Phillips, tho holder foiythe time being of tho license, has been/onvicted for permitting drunkenness in tho said hotel, and is of drunken habits; (i) that the said. Frank Phillips does not hold n certificate of iitness to hold a publican's license, and that, the police have objected to a renewal of the license to the said Frank Phillips on that ground, and on tho grounds that the said Frank Phillips is of drunken habits, and has permitted drunkenness to take place in the raid hotel; (5) that you have failed, to keep and conduct tho said hotel in an orderly, quiet, and respectable manner; (6) that you, the said Elizabeth Mary Phillips, being a married woman, are incapablo of. holding a. publican's license; (7) that you have done, or snffercd to bo done, acts which may cause a withdrawal of the publican's license for the said hotel, or by reason, of which acts the renewal of the license for the said hotel is endangered. On the bench were Mr. W. G. Riddeil, S.M. (chairman), and Messrs. J. Smith, W. ,T. Helyer G. J. Petherick, and G. Tiller. Mr. A. W. Blair appeared for .the owners of the freehold, and Mr. T. Young for Phillips. The application was made under Section 125 of tho Licensing Act, 1908. ■ At tho outset,; Mr. Young raised an objection 'to trie jurisdiction of the Bench, and contended that it had no power to deal with the question of title. In the present case the lease had four years to. run, and so long as the , lease continued the tenant had . a right to occupy tho premises. The matter was one for the Supreme Court to decide. Mr. A. W. Blair, replying, said that. Section. .125 of the Licensing Act, 1008, was perfectly clear, and he was asking for a transfer of the license under that sedtion. The--cashes in which the order could be granted were set out in tlie sub-section. The section, had apparently been framed for the purpose of getting rid of a person who had no lepal right to be in possession of the premises. Ho could prove that the 'tenancy had been terminated, by notice to quit, and the notice was perfectly in order. The lease had been determined and tho Property Law Act had no bearing on tho subject. The two grounds of the notice were nonpayment of rent and breaches of the covenants of the lease, thereby endangering tho license. , Mr. Riddeil intimated that 'the Bench was not prepared to determine the.question of jurisdiction then. ( Mr. Blair then opened, the case for the applicant, and-reiterated the irounds upon , which the case was brought. Hβ stated that the owners, of the property were Michael Henry Sullivan, Bridget Cecilia Sullivan-, and May Ellis. Tho lease- of the hotel ,was granted to John Beveridge for a period of seven years from July 27, 1914, at a yenvly rental of ■£1586, payable weekly on the Tuesday of each week. The covenants of the lease provided for the conduct.of the hotel in a quiet and orderly mariner, and in strict ooinpliance with 'tlie licensing laws. Mr. Blair contended that the place hn<! not been properly conducted, for so. recently as August 9 the New Zealander Hotel had been placed out of bounds for soldiers by the military authorities, and it was the

only hotel in the city to have this stigma cast upon it. The facts that had constrained 'the military authorities to take action were all recorded prior to 'July 2, when the lease was determined. On t.hat date rent was owing from May 15, a. matter of. seven weeks, and the lessee was bound to pay rent every Tuesday. Since the notice of determination was given the rent had been offered' out refused. On the question of non-payment of rent alone the Bench would be able to come to a decision. The lease provided for seven days' grace, and it also provided that the lessor could terminate the lease without notice. '

Continuing, Mr. Blair said that Phillips was an undesirable licensee from the police point of view, and was apparentlystill so, and this property was in the keeping of a man who was considered unfit by the police to hold a license. He came into possession by marrying Mrs. Davey, who was a party tp the lease while the license was in the name of Phillips, who ■ was not a party to tho ■lease. In addition, there was the mass of evidence submitted to 'the Licensing Committee on a previous occasion regarding the conduct of the hotel. Phillips had been convicted, of allowing drunkenness in the hotel, and that constituted a breach of the covenants of the lease. . Cecilia Bridget Sullivan, one of the owners of the freehold, was then called. She stated that the last receipt for rent was dated May 15, 1917. No rent had been paid since. On July 2 notice of determination of the lease -was given, and on the following day seven weeks' rent was owing. Since July 2 she received two cheques through the post, but these were not cashed. In answer to Mr. YouDg witness stated that the rent had always been boTiind. Inspector Hendrey deposed that while in Wellington he had a great deal to do with the New Zealander Hotel, aho hctel was deolared out of bounds by the military authorities on August 9. The facts which ultimately led to the action of the autnorities, he surmised, must have accumulated for a long time. The inspector stated thnt while in AVelirng 7 ton serious complaints were made to him regarding the conduct of the hotel, lo his knowledge Mr. Phillips had never received a' certificate of fitness, and the police did not look upon Mm as a fit and proper person to hold a license. When the case came before the Licensing Bench last September lie objected to the transfer of the license, which, however, the Bench granted. In reply to Mr. Blair as to the conduct of the hotel, .the inspector stated that it was conducted as badly as a licensed house could bo.

Mrs. Sullivan stated that sn« nafl received a certificate of fitness in regard to the New Zealander Hotel. Her income was dependent upon the rent from the hotel, and it was to her interest t?lat the place .sTiould be properly conducted. To Mr. Young, witness said she had not offered any compensation to Mrs. Phillips to give up the lease. Slit had no intention of offering compensation. That closed the case for the applicant. Air. Young aslied whether there was any need for him to proceed. Ho repe.itcd the objection as regards jurisdiction that he raised ;it tho outset, and maintained that Section 125 of the Act was not operative until the lease was declared to lie at an end. Mr. Itiddell said it would be much more satisfactory if the Supreme. Court could decide the question of lease. However, it wits'contended that tho committee had wider powers. The hearing would bo adjourned Until Monday next, and in the meantime the point raised would bo considered.