HOTEL GOODWILLS
BASIS OF DETERMINATION JUDICIAL RULING QUESTIONED (P.A.) GREYMOUTH, July 5. “ Purchasers of hotels to-day are asked to pay through the nose for goodwill, which is available to them only if they flout the law. The figures are such that they can only be maintained by after hours trading,” said the chairman of the Nelson Land Sales Committee, Mr P. S. Boyes, at a sitting of the committee at Greymouth to-day. Mr C. R. McGinley, for a vendor, said that goodwill was incidental to the sale. The land value must be based on the 1942 values, but the goodwill must necessarily fluctuate. A case in Dunedin where Mr Justice Finlay had ruled that goodwill was not tied down to the 1942 valuation was binding on the committee.
Mr Boyes: Just because one mistake is made.
Mr M. B. James (for the purchaser): You are surely not .suggesting that Mr Justice Finlay made' a mistake.
Mr Boyes: He has probably made plenty. The case before the committee concerned the sale of the Dominion Hotel, at Ikamatua, the consideration being £8350, including £6OOO for goodwill. An adjournment for two weeks was decided ujion to enable the Crown representative to study the evidence and make a valuation.
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Bibliographic details
Otago Daily Times, Issue 26197, 6 July 1946, Page 6
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205HOTEL GOODWILLS Otago Daily Times, Issue 26197, 6 July 1946, Page 6
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