LEASE OF A HOTEL.

Lyttelton Times, Volume CXV, Issue 16492, 6 March 1914, Page 4

LEASE OF A HOTEL.

LITIGATION OVER TERMS.

AN OAMARU TRANSACTION.

Tho termination of the lease of Tattersall’s Salcyards, in Oamnvu, a nolicense district, was the subject of an action, in tho Supreme Court yesterday, when Peter Williams, the late tenant, a land agent, for whom Mr Leo appeared, sued Benjamin Perry, hotelkeeper, of Christchurch (Mr Wright) for £lO2 under tho terms of the lease.

Mr Lee said that under the original leaso tho landlord had the right, at all times, without cause, to determine tho tenancy by giving one month’s notico and paying £52 compensation, equivalent to a year’s rental, and half, but not exceeding £SO, of the amount expended on alterations. There was a provision for renewal at an increased rental, but before tho lease expired Williams, finding that he oould not pay tho increased rental, made arrangements for an extension of the lease for one year.

Air Wright said that, while he admitted that tho second lease had been determined without cause, he maintained firstly that there had been a compromise to settle all matters between tho parties for £ls; and, secondly, that tho amount of money expended on improvements had been expended under the original lease, which exr pired on November 14, 1912. The second agreement was not made under tho renewal clause, and there was no question of compensation for improvements in respect of the previous lease, which had expired by effluxion of time, with all the rights under it-. His Honor expressed some surprise at the clause in the lease giving the right of termination without cause, and Mr Lee explained that, tho property was hotel property. There was a. chance at every election that the license would come back, and tho owners reserved the right to cancel the leases, and were prepared to pay the tenant to go out. . . „ “ Tho key of the position, at last, said his Honor. Mr Wright went on to 6ay that he admitted liability to pay the £52 compensation if he could not prove the compromise for £ls. . . His Honor said that in view of tho affirmative defence,. Mr Wright should prove the compromise. Mr Wright said that the second lease had been determined, without cause, in August, 1913, after, running ten months. Notico was given by Perry’s agent in Oama.ru, without knowledge of tho agreement. Perry at this time had also forgotten the agreement. Williams called on Mr Ongley, Perry’s solicitor at Oamaru, and ' pleaded that it was a hardship to go out, as he had practically a chance of a five year s; renowa] of the lease, and lie was hoping to recoup himself for some of Ins expenditure on tho property. Mr Ongley advised Williams to sec Perry, and ho came to Christchurch for .the purpose, and made an offer to take £3O. Perry said that he did not consider himself liable to pay anything hut would give £ls. Perry followed this up with a letter to williams formally accepting the offer. Evidence was given by Benjamin Perry, the defendant. William Fisher M’llrov, F. W. Ongley and the plaintiff. ‘