CORPORATION WINS.

Grey River Argus, 9 May 1912, Page 7

CORPORATION WINS.

TERMS OF GLASGOW. LEASE: An interpretation, interesting to .numerous public bodies, as 50... ihe. 1 construction of what is termed the' Glasgow lease was given by the Court of Appeal yesterday. The judgment was . on ■ an . originating summons, fhe D.C.C. v. the 'City. Corporation* removed, by consent, from the Supreme Court and concern-ing iie construction of three instruments of lease. On the bench at which the case was heard were 'their Honors the Chief Justice (Sir Robert Stout), Sir Joshua William's, Mr. Justice Edwards and Mr Jusrice Cooper. ' ■ Mr. C. P. Skerrett, X.0., witlv him Mr. VV H. D. Bell, appeared . for -the plaintiff company, and Mr T. F. Martin, with him Mr. J. O'Shta (the city solicitor), for. the coi-poration. . The plaintiffs are lessees, and in tvvo leases there :is provision-, •that, a' valuation is .to be made ."of the fair an nual ground rent of die said land only withouii any buildings ' or improvements for a -further term of fourteen years from the expiration of the term, hereby granted." The questions 'in this summons which the parties desire answered were : „ ' - "4. Is the fair annual value of the. "land to be ascertained by arriving at its' fee simple,- value as if jip building*

existed thereon, and fixing the fair anmral ground rent a: some per centage on such freehold value* 'without any regard to any valuable building actually existing- thereon or to, the pur pose for which any such building is designed, suitable and used? "7. What under the provisions of each of the said two leases is the true basis on which, the- valuers shouJd ascertain Lhe fair annual ground rent of the land included in the said lease only without any buildings or improve ments for the renewed tern? As to the .third lease there is a provision ascertaining the proper annual ground rent .for a part of -the term, as follows:. "In ascertaining ' such new rentals the valuers shall not take moo consideration the .value of any building- or improvements then existing on the demised premises,- ..-but they s hall value the full and improved ground rental' of the said premise* that ought ..jo be payable during the| said new term." There.is, also. provision for ascertaining the ground lent in the case of a renewal, viz, "In ascertaining such new rental the vamerers shall not ;ake •take .finfo'^cohsideration the value of any building oi:, improvements dien existing upon the said demised premises, but they- shall value the lull and. .improved" ground rental of the said premises that ought to be payable during the said new term." The question put in. regard to this lease was: — "In the case of the lease of September 30th, 1905, the like questions arise as to' the interpretation of the words "the full and improved ground rental of the -said .premises that ought vo be payable during the said term.' There was this further question: — "Where the valuations of ground rents to be made under the provisions of the said leases respectively are arbi trations as opposed to valuations and the said leases are 'submissions wivh in the meaning of the Arbitration -Act, 1908, and whether the valuers arc arbitrators within • the meaning of the said Act? . The judgment of the cour:, delivered 'by the Chief . Justice, stated: — "As to question 4 the court is- of opinion that it'he : proper answer is 'No.' The interpretation of the clauses referred to, .will appear in answer to question 7.. ...... ; ' "As. to. question 7 the true basis on which the .valuers must proceed* is that there are no buildings nor improvements on .the land. They mus; ascertain .what, a prudent lessee would give, for .-the. ground" rent of the land for the team and on the conditions as to renewal ;and other terms, etc., mentioned. in. the. lease. They must, put out. of considei-ation the fact — if it be a fact— that ■ there are 'building's or improvements .on the; land. "As> to the question .raised, in paragraph 8, we are of opinion that there' •is : difference in : _the mode that has to be , followed , in-., valuing the ground .rents under, the third lease (from that of the other, two leases. .-■:• •. . ■ / "S.S to question. 9 it: was admitted that -the . provisions ... as ; vo : valuations arc submissions in- the meaning of the Arbitration Act, 1908. . . . . . . '