Conflating separate but parallel negotiations over a covid-19 rent rebate and terms for a new lease, Wellington restauranteur Mario Dimitrijoski failed in his claim to have a new twelve year lease from Stride Property for site of his Portofino restaurant.
Mr Dimitrijoski is from Macedonia. His Portofino restaurant in Wellington’s central business district prides itself on its Italian menu.
The High Court was told he and landlord Stride Property Ltd dispute whether a new lease exists. He claims to have a lease running through to 2034. He points to an October 2020 email setting out terms for a replacement lease sent by Stride’s then commercial asset manager.
Associate judge Lester ruled there had never been any concluded agreement. Terms offered were subject to further negotiation and approval. Mr Dimitrijoski did not follow up on these points, Judge Lester said. Subsequent discussions centred on clarification of rent rebates to accommodate losses suffered during government-mandated covid-19 lockdowns.
Judge Lester dismissed Mr Dimitrijoski’s complaint that he was misled by Stride Property, in breach of the Fair Trading Act, by its failure to warn him that loose ends had not been tied up such that there was no new lease in place.
These were commercial negotiations. Stride Property was under no obligation to prompt Mr Dimitrijoski, Judge Lester ruled.
In any event, Stride Property had sent a follow-up email, ten months after negotiations commenced in October 2020, reminding Mr Dimitrijoski of the need to not only pay current rent arrears then totalling $91,000 but also address ‘further lease negotiations for a longer extended term.’
Portofino Wellington Waterfront Ltd v. Stride Property Ltd – High Court (21.06.24)
24.160