Arrears of rent and failure to challenge a rent review cost the Stills family rights to renew their lease of land at Little Akaloa on Banks Peninsular, losing rights to use a rudimentary bach on the property after the family’s near fifty year occupation.
Andrew Stills argued their family was victim of a stitch-up; claiming rights to purchase were ignored, and further alleging fraud in a mix-up over rights of way giving access to their bach on Lukes Road.
The High Court was told land on Lukes Road at Little Akaloa was bequeathed to the Anglican Church in the 1950s. Subdivided lots were then leased out by the Church on renewable twenty-one year leases.
The Stills family came to occupy 36D Lukes Road in 1975. Their leasehold interest passed down through the generations.
Tensions arose within the Stills family; some wedded to the family history, others interested in selling to neighbours Robert and Elizabeth McCormack.
The McCormacks have a holiday home on a neighbouring site. Mr McCormack founded Christchurch real estate firm Harcourts Grenadiers.
Matters reached a head following the McCormacks 2021 purchase of the Anglican Church’s freehold interest in 36D Lukes Road. The Stills current twenty-one year lease for 36D was up for renewal in March 2022.
Their rights of renewal were disputed.
Andrew Stills led the charge, arguing unsuccessfully in the High Court that the Church had ignored what the Stills claimed was a right of first refusal should the Church sell its freehold.
Evidence was given that the McCormacks paid $400,000 to purchase the freehold for 36D. The Stills offered $160,000.
Mr Stills argued there had been duplicity between the Church and the McCormacks in that earlier land title registrations removed any record of the Stills’ then existing legal right of access through their neighbour’s land to their bach at 36D.
With no enforceable legal access, the land at 36D was worth nothing, he said. Rent due should now be zero, Mr Stills claimed.
Evidence was given that these legal rights of access have been reinstated, after valuers pointed out an obvious error in not carrying forward an easement on the title years previously, when new land titles were issued.
There was no evidence of fraud, Justice Osborne ruled.
The Stills family made no formal response to the McCormacks’ 2022 rent review, which offered a further twenty-one year lease renewal at an annual rental of $28,080. Capital value of 36D was assessed at $432,000 in August 2021.
Rent under the then current twenty-one year lease was in arrears. Mr Stills said this was because invoices were sent to the wrong email address.
In the High Court, Justice Osborne said it is the leaseholder’s responsibility to ensure rent is paid, regardless of whether invoices are received or not.
Being late in paying rent, plus a failure to engage in the rent review process, meant the Stills’ lease expired in March 2022, without renewal.
The Stills became trespassers by remaining in possession. The McCormacks, as owners of the freehold, were entitled to take possession of 36D, Justice Osborne ruled.
The Stills were ordered to pay a $60,450 occupation rent for the period running from the March 2022 expiry of their lease.
Stills v. McCormack – High Court (17.08.23 & 22.07.25)
25.167