INTERPRETATION OF LEASE

Otago Daily Times, Issue 23929, 3 October 1939, Page 6

INTERPRETATION OF LEASE

SUPREME COURT JUDGMENT The interpretation of a lease between the Daniel Haynes Trust, Ltd., and the D.I.C. for the latter company’s premises in the Octagon was the subject of a judgment given yesterday by his Honor, Mr Justice Smith. The lease was for 30 years from September 18, 1929, and the rent for the first period of 10 years was £IOOO a year. The rental for the second and third terms was to be fixed by arbitrators at the beginning of each period, and the lease was now about to enter the second period. It was subject to the National Expenditure Act, 1932, in pursuance of which the rental for the first term was reduced from £IOOO to £BOO. The action had been brought in the form of an originating summons, to determine whether the rental for the second term of 10 years, when it was fixed by the arbitrators, was to be subject to a similar adjustment. In his judgment, his Honor stated that the parties did not in September,

1929, desire to fix the rent for the full term of 30 years. They wished to adjust the rental by reference to the circumstances existing about the beginning of each subsequent period of 10 years. A lease so drawn was not within the intention or the scope of provisions requiring deductions from rentals actually in force prior to April 1, 1932. He was therefore of the opinion that the rent for the

period of 10 years commencing on December 8, 1939, when fixed, by the arbitrators and/or their umpire was not subject to a reduction by 20 per cent, of the amount of such rent, but was payable in full by the defendant; and the question asked by the originating summons was answered accordingly. The parties had arranged the costs and no order was made as to them.

At the hearing of the case, which took place on August 18, Mr C. L. Calvert.appeared for the Haynes Trust and Mr J. C. Mowat for the D.I.C.