Spaeth v Hallen [1922] FijiLawRp 3; [1908-1925] 2 FLR 98 (26 October 1922)

[1922] 2 FLR 98

SUPREME COURT CASES OF FIJI

[CIVIL JURISDICTION.]

[ACTION No. 89, 1922]

FREDERICK BENJAMIN SPAETH v. ARTHUR HERBERT HALLEN.

1922, Oct. 26.

Lease and sub-lease - buildings - growing crops-stock and implements - covenant by lessor to purchase by valuation on termination of a lease - further covenant if parties unable to agree on a valuation to refer to arbitration - lessee transferred the lease in breach of lessee's covenants subject to similar covenants contained in original lease - buildings erected by sub-lessee.

Held, on termination of lease the defendant (the original lessor) became liable to the plaintiff (the original lessee) to take at a valuation all things within the terms of the covenants of the original lease - the Court then proceeded to a valuation disposing of Arbitration.

K.J. MUIR MACKENZIE, Acting C.J. In this case the plaintiff claims £5,562 10s. as being the value of the buildings, growing crops, stock and implements on the estate known as Na Tawarau the property of the defendant, taken over by him on the 1st July, 1922, on the expiration of a lease from defendant to plaintiff and in accordance with the covenants contained in that lease.

It seems "that in the year 1906 the whole estate of Na Tawarau and Raviravi, comprising over 8,000 acres, was let to one Armstrong, who had sub-let a portion to Spaeth.

In 1909 the Colonial Sugar Refining Company were developing the country and Mr. Spaeth formed the idea of developing the estate of Na Tawarau into a sugar plantation. His lease from Armstrong expired in 1912, so that for the purpose mentioned he desired a longer lease which would give time to make the necessary improvements followed by an option to renew at the end of the term; or, if the parties did not renew, to be entitled to call upon the lessor to pay for the buildings, stock, implements and growing crops on the estate when his term finished.

He therefore entered into correspondence with Mr. Crompton, who was at that time acting as plaintiff's solicitor, making his proposals, and pointing out the advantage to be gained by the lessor, if the lessee were encouraged to improve the estate by bringing it into proper rotation and erecting the necessary buildings, rather than exhaust the estate, all of which could not be done unless the lessee was given, the option of renewal and an assurance that he would not be spending his money for another's benefit.

Negotiations went on by correspondence between Spaeth, Crompton, and Hallen until in June, 1910, Hallen came to Suva and sees Spaeth, after which Spaeth writes Crompton to the following effect:-

The conditions verbally agreed upon between myself and Dr. Hallen are as follows:-