QUEEN street fire HAS COURT SEQUEL

Sun (Auckland), Volume II, Issue 314, 27 March 1928, Page 13

QUEEN street fire HAS COURT SEQUEL

LATE CITY

INTERPRETATION OF LEASE The question of the interpretation of a lease after a building had been damaged or destroyed by fire, gave rise to an interesting issue in the Supreme Court this morning before Mr. Justice Blair. Application for the order was made by Abraham Berman and Eric Holdsworth Burton, solicitors, of Auckland i Mr. A. 11. Johnstone), and the action was defended by Thomas Cummack : ,nd Co., agents, of Auckland (Mr. Peak). Mr. Johnstone said that D. Dingwall leased premises at 89 Queen street to Hugh Wright. Ltd.; the latter subleased to Robert Hall Wood ; who again sub-leased to Berman and Burton. Wood then sold his interest to Cummack, the defendant. The lease covered the first floor of the building above Hugh Wright’s shop. On February 5 last a tire destroyed the offices, and Burman and Burton had to vacate them and take up temporary quarters elsewhere. The firm had taken over the lea on the same terms as the two head leases, tho fire clause in the lease stating that if rendered untenantable the lessor may, at his option, to be exercised by written notice within 14 days, either terminate or reinstate. Berman and Burton received the notice to reinstate a day too late, and the whole question was whether in that case they had the option to terminate. Counsel contended that according to the lease the destruction of the premises by fire was plainly contemplated by the defendants. because it was clearly set out in clause 10 of the lease. Mr. Peak admitted that notice was not given within 3 4 days, but lie contended that that did not alter the position, and that time was not the essence of the contract. The lease still remained. His Honour said he would endeavour to give judgment to-morrow.