The economic dispute is about market rent for a billboard sited in a prominent position beside the Mount Maunganui bridge flyover in Tauranga on a lease running to 2038, with Go Media currently charged annual rent of $20,000. The legal dispute is about alleged chicanery by landowner Wright Barry Family Trust cancelling the current billboard lease to force a new lease with increased annual rental at $100,000.
In the High Court, Justice Andrew imposed an interim injunction allowing rentals to continue temporarily at $20,000. A full court hearing is needed to resolve Go Media’s claims of misrepresentation by Wright Barry.
The High Court was told Go Media first took up lease rights for the digital billboard in 2018. The site on Newton Road then operated as a car sales yard.
In 2023, the then owner sold the site to Wright Barry Family Trust, taking ownership subject to Go Media’s existing billboard lease.
Within weeks of assuming ownership, Wright Barry gave notice the billboard lease was cancelled, pointing to a ‘redevelopment’ clause in the billboard lease allowing cancellation should it be in the way of any proposed redevelopment.
Within a month, Go Media was offered a new two year ‘temporary’ lease at $100,000 per annum on grounds there would be a short delay with redevelopment plans.
Go Media stood its ground, claiming there was no genuine redevelopment underway.
Nearly eighteen months later, Wright Barry again gave notice of cancellation; supported this time with notice of planning consent sought for a new building on site and copy of a lease to Hireace as new tenant.
Go Media surrendered rights to its current billboard site following an agreement allowing it rights of first refusal should Wright Barry later have space available for a new billboard.
Evidence was given of Go Media subsequently negotiating directly with Hireace for a slight variation to its planned build, enabling the existing billboard to remain. Go Media offered Hireace free advertising, part of a ‘contra deal,’ encouraging Hireace’s approval for changes accommodating the existing billboard.
Go Media claims Wright Barry Family Trust is in breach of the Contract and Commercial Law Act and the Fair Trading Act. It alleges Wright Barry misrepresented, at the time Go Media surrendered its lease, the possibility of Go Media’s existing billboard site remaining available despite Hireace’s site redevelopment.
Go Media says it was told by Shaun Barry that after Hireace’s rebuild ‘there won’t be a metre to spare on the property.’
It alleges Wright Barry trustees deliberately engineered a redevelopment triggering cancellation while knowing the existing billboard could be accommodated.
Go Media is suing to have the original billboard lease reinstated.
Go Media Bacbou Ltd v. Wright Barry Family Trust – High Court (13.04.26)
26.132