SALE OF HOTEL

Timaru Herald, Volume CLVIII, Issue 23322, 4 October 1945, Page 4

SALE OF HOTEL

Tenant’s Right To Portion Of Goodwill (N.Z.P.A.) DUNEDIN, Oct. 3. The right of the outgoing tenant in a hotel to appear as an interested party and to receive a portion of the goodwill paid the vendor by the purchaser was argued before the Land Sales Committee yesterday in a case for the transfer of the Strath Taieri Hotel. Counsel for the tenant submitted that his client was entitled to some recognition for the increase in the weekly takings 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 part of the goodwill to go to the tenant. For the vendor, it was submitted that the proposal was revolutionary, and that the tenant wanted the committee to do something beyond its powers. The committee’s concern was to safeguard the interests of returned soldiers, or where they were not involved, to fix fair consideration, not to recognise an aggrieved tenant. The committee ruled that the claim did not come within the scope of the Act, and therefore the committee had no power to order payment to the tenant of part of the goodwill. The tenant could have no interest in the proceedings.