The 2016 Kaikoura earthquake damaged Deloitte House in Wellington. Precinct Properties Holdings Ltd owns the building. OMV New Zealand Ltd leased the ninth and tenth floors of the building. OMV says the earthquake damage has rendered it untenantable and that the lease has automatically terminated. Precinct denies this and has claimed for unpaid rent, seeking summary judgment in the High Court. OMV asked the High Court to stay the rental summary judgment pending arbitration of wider issues such as misrepresentations by Precinct about the earthquake rating of the building and untenantability. The Court of Appeal in OMV New Zealand Ltd v Precinct Properties Holdings Ltd  NZCA 240 dismissed an appeal by OMV from the High Court decision that a claim for rent was not subject to the arbitration clause in the lease. So the claim for unpaid rent could continue in the High Court. OMV has to pay the actual legal costs of Precinct under the lease.
0 0 Grant Shand Grant Shand2018-07-26 01:32:532018-07-26 01:32:53Post earthquake lease dispute