Chen wins Cornwall Park Trust rent stoush

Yong Xin Chen was sued for more than $300,000 for abandoning her Greenlane home (pictured). Photo / NZ Herald

The Cornwall Park Trust board is appealing a ruling that an Auckland property developer doesn't have to pay it $170,000 in back rent.

Yong Xin Chen bought a Maungakiekie Ave house - at the edge of Auckland's Cornwall Park - on leasehold land in 2005 for $450,000 but in 2010 her annual rent increased from an $8300 to $73,750.

Chen attempted to negotiate to freehold the property and adjust the rent if her lease was renewed but vacated the house in November 2011.

Cornwall Park Trust Board, which owns the land, later chased Chen in the High Court at
The lawyer of woman who defended Cornwall Park Trust Board's $170,000 lawsuit over back rent says she is pleased with the win but suspects her opponents may appeal.

Cornwall Trust board director Michael Ayrton said yesterday the organisation was "taking time to consider legal opinion on the back rent ruling before deciding on any next steps".

While Yong Xin Chen successfully defended one part of the board's claim, Justice Rebecca Ellis yesterday said the former Maungakiekie Ave resident is liable for almost $120,000 for the cost of repairs done to her property after she left.

Chen bought a house, on the edge of Auckland's Cornwall Park, on leasehold land in 2005 for $450,000 but in 2010 her annual rent increased from an $8300 to $73,750.
Chen attempted to negotiate to freehold the property and adjust the rent if her lease was renewed but vacated the house in November 2011.

Cornwall Park Trust Board, which owns the land, later chased Chen in the High Court at Auckland for close to $300,000 in back rent and repair work on the property, which is now being tenanted.

Chen fought the claim and told the court in May the trust board had not been fair when dealing with her.

In a decision released yesterday Justice Ellis dismissed the board's claim for the backdated rent at the increased amount.

"In my view the claim is not supported by the terms of the lease, properly interpreted," the judge said.

However, the board's damages claim for $119,327 of repair costs succeeded.

Chen's lawyer, litigation associate Jennifer Wickes, said she was pleased with the decision on rent, especially because she was up against a Queen's Counsel.

"I'm very happy on the decision about the rent. We defended the claim as much on a matter of principle than anything else. I'm disappointed about the repair stuff. It may well be that Cornwall Park is going to appeal this decision...I suspect that this is not the end of the matter and if Cornwall Park does appeal the rent issue then it probably would make sense for us to appeal the other issue," Wickes told the Herald today.

Ayrton said last night that Chen's case was "unusual" and had "no great bearing" on the great majority of the area's other leases.

Cornwall Park Leaseholders Association chairman Don Tilbrook said today it was too early to say how the decision could impact on others.

"It possible that ti could apply to other lessees of course or departed lessees, which is more important. But I haven't done any analysis on that.

While there were other people who had abandoned their leasehold properties in the area, Tilbrook wasn't sure if they had also been chased for back rent.