In re Trailways Hotel (Rarotonga) Ltd [1985] CKHC 5 (1 April 1985)

IN THE HIGH COURT OF THE COOK ISLANDS
HELD AT RAROTONGA
(LAND DIVISION)

IN THE MATTER of the land
PUNAMAIA SECTION 190E, No.2, AVARUA

AND

IN THE MATTER of a Deed
of Sublease dated 18 December 1973 to
TRAILWAYS HOTEL (RAROTONGA) LIMITED

JUDGMENT OF DILLON J

Mr Clarke appeared on this matter for Financial Enterprises Limited the Lessee; Paora Kainuku appeared on behalf of the landowner.

The section adjoins the Manager's House section which adjoins the Tamure Hotel site. The already established values those two sections are as follows:-

(a) Hotel site – 1 ¼ acres – value $14000 – Rental $700 p.a. Rental per acre per annum $560 – Dated 5/83.

(b) Manager's site - l acre - value $9600 - rental $480p.a. Rental per acre per annum $480 - Dated 1981

Now Paora claimed that a rental of $1000 was required although no basis for this amount was produced. He did submit that the court records showed a mortgage of $300,000 or $350,000 on this section i.e., by the Lessee and that the size of the mortgage therefore justified an increased rental of $1000.

Mr Clarke on the other hand pointed out that the mortgage was over the three properties but in any case had no relevance to this valuation; that the adjoining properties had been valued and were comparable; and that there were no advantages or qualities in this section which justified an increase in value over the other properties.

Mr Clarke offered $750 in line with the valuations already established which would produce a capital value for the land of $15,000. That in my view is the value of this land in 1983. Accordingly I fix the value of the land at $15,000 - and the rental at $750 p.a. as at the 1^st November 1983.

Judge

01/04/85