TENANT CLAIMS GOODWILL

Southland Times, Issue 25794, 4 October 1945, Page 7

TENANT CLAIMS GOODWILL

Middlemarch Hotel Transfer COMMITTEE’S ADVERSE DECISION . ” (Special) Dunedin, Oct. 2. The right of an outgoing tenant ma hotel to appear as an interested Pm'J-X and to receive a portion of the goodwill paid to the vendor by' the purchaser, was argued before the Land Sales Committee by Mr J. E. K. Mirams, when an application for the transfer of the Strath Taieri Hotel, Middlemarch, from John Simpson to William Michael McCloughlin was heard. i . j The committee, decided that it had no power to order the payment to the tenant of part of the goodwill, and that therefore the tenant could have no [interest in the proceedings. The transfer was granted at £5,500, including £3125 for goodwill. 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. Counsel submitted that it was within the power of the committee under the Act, if consent were granted for the transfer, to order payment of part of the goodwill of the hotel to the tenant. It was not expected that any amount should be granted, but that some recognition of the tenants labours should be made. “REVOLUTIONARY” PROPOSAL For the vendor, Mr B. Stevenson submitted that the proposal was rev “ olutionary, 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 Y“Uation, and not to help 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, the I chairman said the committee was or opinion that the claim did not come within the scope or purpose of the Act, and therefore the committee had no power to order payment to the tenant of part of the goodwill. As a result, the tenant could have no interest in the proceedings.