The Christchurch earthquakes have resulted in many insurance
issues. One of the more unexpected ones is whether leases have come
to an end because of damage to the building, or prevention of
access to it. This turns on whether the premises are untenantable.
Coverage for Landlords under business interpretation policies
usually turns on this.
The High Court's recent decision in Russell v
Robinson (1 April 2011) provides us with a timely reminder of
the meaning of the word 'untenantable' as it applies to
leased premises.
The case involved a four year lease, on the ADLS form (4th
edition 2002), of the first floor of a three storey building. On
the first day of the lease, a serious fire broke out as a result of
work being undertaken for the tenants. There was extensive
structural damage, floors were burnt through, partition walls were
damaged and the electrical and air conditioning systems were
destroyed. The estimate for the restoration of the premises was
9-10
