HOTEL RENTS

Dominion, Volume 12, Issue 56, 30 November 1918, Page 3

HOTEL RENTS

■IMPORTANT JUDGMENT. Mr. Justice Chapman has delivered judgment in the case of Crawford v. Dwan Bros., T. and W« Young, and J. Speight and Co. The judgment is of particular interest to owners and lessees of hotels. Proceedings' were brought for the purpose of determining the rights of the parties. The admitted facts Sere that tho plaintiff leased Te Aro Hotel to the defendants for a period at JJIO4O per ainmim, and received .£SOOO goodwill. The tenants sub-leased the hotel for five yenn-s and received ,£IOOO for the goodwill. Tlie sub-lessees claimed reduction in the rent, which was fixed at .-£fi24 per annum. The Court was , asked to ~ determine whether the owner also was bound to make a reduction to the tenants such as they had made. His Honour reviewed the provisions of the statute with reference to the reduction of hotel rentals during the currency of the war legislation affecting hotels. The question of premiums received from the , tenants and sub-tenants were not .for his consideration. Hd held that the 'tenants wore entitled to the*. Mime reduction from the owner as they had to allow the sub-tenants. Tho defendants, for whom Mr. T. W. Young appeared, wore allo-ved «£]2 12s. costs. Mr, 0. Beere appeared for plaintiff.