In the case of Birdwood Custodians v New Lynn Compliance Centre, a fire at the leased premises led to the landlord giving a notice terminating the lease on the basis the fire had rendered the building untenantable. The court found that the untenantability clause in the lease was for the benefit of the tenant, to make a call on, not the landlord. There was a separate provision in the lease allowing the landlord to determine demolition if necessary, and the giving of one month notice to the tenant terminating the lease on that basis. As the landlord had failed to follow the correct provision, the effect was that the landlord had wrongly “converted” the tenant’s chattels and goods.
