ALLEGED BREACH OF COVENANT.

New Zealand Herald, Volume XLIII, Issue 13368, 24 December 1906, Page 7

ALLEGED BREACH OF COVENANT.

A HOTEL CASE.

[BY TIXFUEAi'IJ.PRESS ASSOCIATION ]

DrxEDix. Saturday. His Honor Mb. Justice Chapman safe in banco to-day to hear argument as to the possession of tho Universal Hotel, MaeLag-gan-street. fhe plaintiffs were Peter MeLauren, Alfred A. Finch, and Hugh ' H. Inglis and the defendant was Charles K. Little. In March, 1901, the plaintiffs leased tho premises to Wm. 11. Anderson for a term of seven year.? and two months, Anderson covenanting not to permit anything to be done in contravention of tho Licensing Act whereby the license would be liable to bo forfeited, suspended, or endorsed, or a renewal endangered. Afterwards tho lease became vested in Little. On October 23 last Little was convicted of permitting drunkenness on the premises, and tho conviction was endorsed on tho license. (Plaintiffs thereupon issued a writ, claiming possession and £23 odd as rent, also damages, etc., and default being made in filing a statement of defence within the time judgment was entered up for possession and the arrears of rent, leaving the other mattors to go to trial. The defendant obtained a stay of tho proceedings until to-day, and now moved to sot aside, the judgment on tho grounds—(l) That the defence had not been filed through inadvertences; (2) that Little had a good defence, in that the endorsement of tho conviction was not a breach of the covenant, and that under the Property Law Act, 1905, section 93, notice had not been given by the landlord to the tenant claiming compensation. Mr. -.{Solomon argued the matter for the tenant, and Mr. Finch appeared on the other side. After bearing argument His Honor reserved judgment, which will be given during the vacation.