HOTEL RENT

Evening Post, Volume CI, Issue 32, 7 February 1921, Page 8

HOTEL RENT

EARLY CLOSING REDUCTION.

■■ How long the 'lessees of the Shades Hotel, . Chrisfchurch, should continue to 'enjoy the reduction of rent agreed on at the introduction-of,six .o'clock.closing was the subject of legal- argument last week, -. Before. "Mr.. 1 Justice' Herdnian at Christ-, church. The case was of the utmost importance to all licensees, inasmuch as it was ■ the first of its kind. ' The fact that the reduced rent was. to apply f or the duration of the early closing provision was the point at which the difficulty arose. Mr. Gresson, for'the plaintiffs, submitted that when the rent was reduced the Act contained the clause: "This Act shall remain in force during the continuance of the present war with Germany and for six months thereafter and no longer." He maintained ' that the repeal_o£ this particular clause in 1918 did not affect the agreement, = which expired..six months after 1 tho war.- Mr. Sim, for 1 the defendants, submitted that as the rent.was reduced because of reduced proßts consequent upon ( early closing, itshould remain- in fprce wl»ile early closing continued." „ It was stated, that the plaintiffs'demanded from the defendants as from 'lOth.'.July, '1920, the' original rents agreed* upon by t .the memorandum of Jeasepbiit: the defendants refused to pay them and claimed that they were still en- ■ titled to the-benefit of the award. . The question; for the Court to determine was whether, the ..award .was still /in force or y Whether tho plaintiffs were entitled to re- / eeive the original rent secured by the leasje. .During the argument His Honour a'jjreed-with Mr. Sim that the reduction ilj 'rent was granted on account of the reduced hours. In reply to this, Mr. Gresson submitted that since the close of the war there had been such an increase, in'drinking, that .profits had again reached 'normal, aa was - shown by the goodwills that were being paid. '^Decision was reserved.