Ryan Laird, owner of Go Vino restaurant and bar at Cooks Beach near Whitianga, took to the High Court to block a rival business owned by Hamilton-based Louise Stainthorpe seeking to boot him out and take over the site.
Since 2007, Go Vino has leased the ground floor of its Cooks Beach site through Mr Ryan’s company Go Lounge Ltd, with owner Ryan Laird living above in residential accommodation on a separate lease. The restaurant lease currently has rights of renewal running through to 2030. The High Court was told the landlord sold the premises by auction in July 2021. New owner, OECL Ltd, has Hamilton entrepreneur Louise Stainthorpe as sole director and joint shareholder. OECL took ownership subject to Go Lounge’s existing lease. Soon after buying, OECL gave notice that there would be no lease renewal in August 2021 and Go Vino had to be out by Christmas.
In the High Court, Justice Lang ordered a halt two weeks before Christmas, giving Go Lounge time to challenge OECL’s refusal to grant a further three year renewal. Go Lounge was up to date on rent. Its request that OECL go to arbitration as required by the lease was ignored by OECL. The Property Law Act gives lessees only three months to challenge notice by a lessor to end a commercial lease. OECL’s claim that Go Lounge was outside the three month time limit was dismissed by Justice Lang. OECL’s email to Go Lounge refusing a renewal did not provide all information required by the Act and did not qualify as notice of refusal to renew.
OECL was ordered to pay an increased contribution to Go Lounge’s legal costs. OECL had no justification for playing hardball, forcing Go Lounge to get a High Court injunction, Justice Lang ruled.
Go Lounge Ltd v. OECL Ltd – High Court (9.12.21)
22.016