FAIE ANNUAL VALUE

Evening Post, Volume LXXXIII, Issue 95, 22 April 1912, Page 8

FAIE ANNUAL VALUE

CITY LEASEHOLD PROBLEM ORIGINATING SUMMONS IN COURT OF APPEAL. What is the fair annual value of the corporation's leaseholds? This, in brief, was the point 6ubmitted to the Court of Appeal' in an "originating summons under the Declaratory Judgments Act by tho Drapery and General Importing Company, aeking for an. interpretation of three deeds of lease dated 7th January, 1892, 16th March, 1892, and 30th September, 1905, and particularly the provisions respecting the renewal of tho leases. < The court consisted of the Chief Justice (Sir Robert Stout), Sir Joshua Williams, and Justices Edwards and Cooper. Mr. C P. Skerrett, K.C., with him Mr. W. H. D. Bell, appeared for the D.1.C., and Mr. T. F. Martin, with him Air J. O'Shea, City Solicitor, for the corporation. The princpal questions submitted were: — 1. Whether "the fair annual ground rent of the said land only without the building and improvements thereon " is to be ascertained as if there in fact existed no buildings and improvements thereon. 2. Is the fair annual value of the said land to be ascertained by arriving at its fee simple value a 6 if no building existed thereon and fixing the fair annual ground rent at some percentage on euch freehold value without and regard to any valuable building actually existing thereon or to the purpose for which any such building is designed suitable and used? 3. Ought the valuers in arriving at "the fair annual ground rent of the said land only (without tho buildings and improvements thereon)," although not increasing 6uch value by reason of the building or buildings on the said land take into consideration all the circumstances^ including : — (a) The duration of the renewed term, (b) the fact that the land has a valuable building thereon designed and suitable for a particular use, and whether, in their opinion, such building reasonably restricts tho use of the land during the renewed term to the us© for which it is designed" and suitable? (c) The possibility of the destruction of the building during the new term by fire, tempest, earthquake, or otherwise. The parties were desirous thai the Court should determine the true basis on "which the ground rents' :for new terms under- -the said. leases should be ascertained, and, also whether the valua-, tions of ground rents were governed by the provisions of the Arbitration Act/ 1908. Mr. Bell was addressing the Court as The Post went to press.