Changes on the way for commercial lease Covid-19 rent disputes

Author(s): Virginia Bonanni
A woman wearing a mask is sitting at a desk, participating in a video call on her laptop during one of many pandemics lockdowns. The person on the screen is also masked. The desk features potted plants, a notebook, and small decor items, all set in a brightly lit room.

The government has introduced a law change which will imply into commercial leases that don’t have an existing no access in emergency clause, a provision requiring a fair proportion of rent and outgoings to be paid when a tenant has been unable to conduct their business due to the Covid-19 lockdown restrictions. Once the law is passed, it will be backdated to take effect from 28 September 2021.

The law change means that landlords and tenants will need to try to agree on the amount of rent and outgoings that is fair. Parties can also agree that the changes implied by the new law do not apply to them.

If the landlord and tenant cannot agree on what is fair rent and outgoings, any dispute may be referred to arbitration, mediation or expert determination.

The government is no longer funding arbitration or mediation for such disputes, but the New Zealand Dispute Resolution Centre is offering a low cost fixed-fee arbitration and mediation service, and our rules mean that parties will share the costs of the arbitration or mediation service equally.

To find out more about the scheme, FAQs and how to apply, click here.

Other resources you might like

If you found this article helpful and are interested in learning more, there is a wealth of other resources available on our website. We have a wide array of articles and guides on a variety of topics, each designed to provide you with a deeper understanding of the subject matter. We encourage you to explore these resources and deepen your knowledge.

A close-up view of a laptop displaying stock market charts and data. Hands are visible typing on the keyboard. In the background, people in business attire appear to be engaged in a discussion, one holding documents while another operates a tablet.
Arbitration

Arbitrator’s exercise of phantom jurisdiction

In CMB v Fund, Cattle and Management [2023] HKCFI 760, the Hong Kong Court of First Instance ruled that a pre-emptive arbitration should be set aside as there was no dispute between the immediate parties to the arbitration and the award was beyond the arbitrator’s jurisdiction.
Learn more
A grand building with intricate architecture and multiple spires, set against a blue sky with scattered clouds. Several flags, including red and yellow ones, can be seen in front of the building. The structure appears historic and majestic.
Arbitration

The State immunity siesta: Australia’s top court renews Spain’s understanding of ICSID

In a recent decision, the High Court of Australia has ruled that an ICSID arbitration award between the Kingdom of Spain and a company from Luxembourg, Infrastructure Services Luxembourg S.à.r.l, can be recognised and enforced, but not the subject of execution. Kingdom of Spain v Infrastructure Services Luxembourg S.à.r.l. & Anor provides clarity around the application of State immunity and develops an understanding on how the ICSID Convention can be interpreted. [1]
Learn more
A traditional Chinese pavilion with intricate details and a tiled roof stands in the foreground. In the background, a modern city skyline is visible under a partially cloudy blue sky. Lush greenery surrounds the pavilion, blending nature with architecture.
Arbitration

Federal Court of Australia Enforces Foreign Arbitral Award of $40 Million

In Guoao Holding Group Co Ltd v Xue (No 2) [2022] FCA 1584, the Federal Court of Australia granted enforcement in Australia of a foreign arbitral award issued in China, and dismissed objections that enforcement would be contrary to Australian public policy.
Learn more

Get in touch

Contact our team today to see how we can help

Contact us

This field is for validation purposes and should be left unchanged.