SALE OF HOTEL

Otago Daily Times, Issue 25964, 3 October 1945, Page 4

SALE OF HOTEL

TENANT’S CLAIM ARGUED RIGHT TO PORTION OF GOODWILL The right of an outgoing tenant in an hotel to appear as an interested party and to receive a portion of the goodwill paid to the vendor by the purchaser was argued before the Land Sales Committee yesterday by Mr J. E. K. Mirams when an application for the transfer of the Strath-Taieri Hotel, Middlemarch, from John Simpson to William Michael McLoughlin was heard. The purchase price was £5500, made up of £2375 for land and buildings and £3125 for goodwill. The committee— Messrs W. M. Taylor (chairman) and D. J. Ross—decided, however, that it had no power to order the payment to a tenant of part of the goodwill and that therefore the tenant could have no interest in the proceedings. Recognition of Effort

Mr Mirams, who appeared for John Charles Ramsden, the tenant, submitted that his client was entitled to some recognition for the increase in the weekly takings of the hotel which he had built up during his tenancy. He submitted that it was within the power of the committee under the Act, if consent were granted for the transfer, to order the payment of part of the goodwill of the hotel to the tenant. It was not expected that any large amount should be granted, but that some recognition of the tenant’s labours should be made. For the vendor, Mr I- B. Stevenson submitted that the proposal was revolutionary and that the tenant wanted the committee to do something which was beyond its powers. The committee’s concern was to safeguard the interests of returned soldiers, or, where they were not involved, to fix a fair consideration, not to recognise an aggrieved tenant. His client was not prepared voluntarily to contribute any part of the goodwill to the tenant. Giving the committee’s decision on the tenant’s right to be heard, Mr Taylor said the committee was of the opinion that the claim did not come within the scope or purpose of the Act and therefore the committee had no power to order the payment to the tenant of part of the goodwill. As a result the tenant could have no interest in the proceedings. After hearing evidence regarding the value of the property the committee granted the application for the transfer at the purchase price asked for. At the hearing Mr J. R. Hampton represented the Crown and Mr H. S. Ross appeared for the purchaser. Applications Approved The following applications relating to properties of £IOOO and over were approved:— ~ _ ~ Janet' Petrie Tontain to David Robinson Corbett and Verita Ivy Mary Davis Corbett, allotment 4 D.P., town of Dunedin, 46 Manor place; purchase price, £1550. Alexander Thomas John Stiven to Georgina Grace Smith, part allotment 32, township of Tainui, Ravelst'on street; purchase price. £2OOO. Winifred Elsie Fraser to Archibald Walter Gibb, allotment 1, plan 4071. town of Oamaru; purchase price, £2450 (reduced by consent to £2350). John William Henry to Harry Rolls, lot 26, township of Middleton Park extension; purchase price, £l67s—land and buildings £1650, chattels £25 (reduced by consent to £1510). James Raymond Crombie to Blanche Rosamond Cullen, allotment 16, township of Newburgh extension; purchase price, £I4OO (reduced by consent to £1250). Angus John McDiarmid to Andrew Robert Beatson, allotment 2, township of Tainui; purchase price, £1450 (reduced by consent to £1420). „ . Albert Joseph Lovell to William Robert Sutton, part allotments 1 and 3, township of Musselburgh; purchase price, £llsO (reduced by consent to £1125). John Anthony Paterson to Herbert Pryde, allotments 71 to 75 and 80 to 83. township of Holyrood; purchase price. £3OOO (land and buildings £2BOO. milk run £200). , . _ John William Hermann Clarke to Susannah Dodds and others, section 73, block 18, town of Dunedin; purchase price, £2650). , T Alan Bagrle Newmarsh Roy to Jajnfj Curran, allotment 1, township of Bayfield extension; purchase price, £1450. William Nils Peter Kloogh to James Charles Pearson, section 1244 R and parts sections 41 to 45, block 6, North Harbour and Blueskin; purchase price, £ISOO (land and buildings £l3lO, stock £Bo, chattels £105). . .. _ Andrew Boyd Thomson to Arthur Beniamin Theodore Lind, part section 13, block 13. Dunedin and East Taieri districts: purchase price, £1450. Richard James Vickers to John Herbert Binns, part allotment 13, Belleknowes extension; purchase price, £IBSO.