The Cornwall Park Trust Board v Yong Xin Chen

COURT OF APPEAL OF NEW ZEALAND

TE KŌTI PĪRA O AOTEAROA

14 March 2016

MEDIA RELEASE

THE CORNWALL PARK TRUST BOARD v YONG XIN CHEN

(CA645/2014) [2016] NZCA 65

PRESS SUMMARY

This summary is provided to assist in the understanding of the Court’s judgment. It does not comprise part of the reasons for that judgment. The full judgment with reasons is the only authoritative document. The full text of the judgment and reasons can be found at www.courtsofnz.govt.nz.

1. The Court of Appeal has today delivered a judgment allowing an appeal by the Cornwall Park Trust Board relating to residential land adjoining Cornwall Park which the Board leased to Yong Xin Chen.

2. Mrs Chen brought the property in November 2005 when the ground rent payable under the lease was $8,300 per year. When the 21 year term of the lease expired in March 2009, the new ground rent for the next 21 years was fixed by the process of valuation under the lease at $73,750 per year. Mrs Chen did not challenge that amount but she remained in possession of the property until November 2011. Ultimately, she did not renew the lease and the Board resumed possession of the land as well as ownership of the house on the land which was forfeited under the lease.

3. A dispute arose over two issues: first whether Mrs Chen was liable to pay rent to the Board at the increased rate during the period she remained at the property or whether she only had to pay at the lower rate under the expired term. Second, whether Mrs Chen was liable to pay for costs the Board incurred in repairing the property after it was vacated.

4. On the first issue, the High Court found in favour of Mrs Chen, holding that she only had to pay rent at the lower rate for the period after the lease expired. The Court of Appeal has allowed the Board’s appeal on this point, finding, as a matter of interpretation of the lease, that Mrs Chen was liable to pay at the increased rate.

5. The Court of Appeal has upheld the High Court’s finding that Mrs Chen was liable to pay for the reasonable cost of repairs to the property amounting to $119,327.19.

Full judgment: CornwallParkTrustBoardIncvChenCA6452014.pdf

3. A dispute arose over two issues: first whether Mrs Chen was liable to pay rent to the Board at the increased rate during the period she remained at the property or whether she only had to pay at the lower rate under the expired term. Second, whether Mrs Chen was liable to pay for costs the Board incurred in repairing the property after it was vacated.

4. On the first issue, the High Court found in favour of Mrs Chen, holding that she only had to pay rent at the lower rate for the period after the lease expired. The Court of Appeal has allowed the Board’s appeal on this point, finding, as a matter of interpretation of the lease, that Mrs Chen was liable to pay at the increased rate.

5. The Court of Appeal has upheld the High Court’s finding that Mrs Chen was liable to pay for the reasonable cost of repairs to the property amounting to $119,327.19.

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