Rent For Furniture Warehouse Sustained By Supreme Court

Gisborne Herald, Volume LXXVI, Issue 22971, 14 June 1949, Page 6

Rent For Furniture Warehouse Sustained By Supreme Court

The reserved judgment of Mr. Justice Hutchison in the case of Humphreys Furniture Warehouse, Limited, against Geoffrey Townley Cuthbert was delivered at the Supreme Court in Gisborne yesterday afternoon. The case involved the application of the plaintiff company for the fixing-of a fair rent. Its contention was that the rent of £1248 per annum set out in the lease granted to it by G. T. Cuthbert exceeded the basic rent by £2OO per annum, and should be reduced. His Honour reviewed the evidence, of other rents given in the proceedings, and came to the conclusion that on the basis of comparative rental values the rent of £1248 was not unreasonable. He held also that while the comparative rental value was the main test to, be applied, a check-up on a capital value basis yielded the same result. The question then remained, had the lessee established that there were special circumstances justifying the increase, for in the absence of such special circumstances the basic rent must prevail? Special Circumstances

His Honour reviewed the various .considerations put forward by Mr. L. T. Burnard for Cuthbert as special circumstances. He rejected the yiew that the approval of the Land Sales Court; and the agreement of the parties, constituted special circumstances, but held that the surrender of the old lease, and the grant of a lease to the new limited company, releasing Humphrey’s personal covenant, did constitute special circumstances. He further held that the term of the new lease, being for seven years with a right of renewal was an important special circumstance, being an advantage to the lessee, and a detriment to the lessor. He also considered that the’ alteration in the repair covenant of the lease was a special circumstance, though not of great weight. Mr; Justice Hutchison therefore considered that special circumstances had been established justifying the increase to £1248. If a 10 per cent, increase were allowed for the length of tenancy and smaller allowances for such things as the alteration of the covenants and the substitution of a limited liability company for Humphrey personally as lessee, the increase was accounted for. His Honour therefore fixed the fair rent at the figure of £1248 set out in the IS Mr. W. J. Sim, K.C., and Mr. A. P. Blair appeared for Humphreys Furniture Warehouse. Limited, the lessee, and Mr. L. T. Burnard for G. T. Cuthbert, the lessor.