Reserved decision — objection to jurisdiction — lease — rent arrears — cancellation — COVID-19 — Arbitration Act 1996, sch 1 art 8(1) — District Court Rules 2014, RR 1.8 & 5.51 — Coffee Culture Franchises Ltd v Home Straight Park Trustees Ltd [2021] NZHC 577 — SHK Trustee Company Ltd v NZDMG [2022] NZHC 2620 — Linco Properties Ltd v Townhouse Motel Ltd [2020] NZHC 2404 — Asian Foods West City Ltd v West City Shopping Centre Ltd HC AK CIV-2007-404-1215 — Zurich Australian Insurance Ltd v Cognition Education Ltd [2014] NZSC 188; [2015] 1 NZLR 383 — Coffee Culture Franchises Ltd v Home Straight Park Trustees Ltd [2021] NZHC 577. These proceedings related to a commercial property that the first defendant company had leased from the plaintiffs. The Court had already entered summary judgment against the first and second defendants for rent arrears and outgoings, as well as costs incurred from the first defendant cancelling the lease. In the current hearing the third defendant challenged the jurisdiction of the Court to hear the matter against him. He submitted that according to the lease, any disputes were to be resolved by arbitration. He submitted that there were two matters that should be referred to arbitration: the amounts claimed by the plaintiffs, and whether the defendants were owed any abatements because of the Covid-19 lockdowns. The Court found that for the purposes of the Arbitration Act, there was a dispute between the parties. It was unclear what outgoings the plaintiffs had claimed and whether they had properly applied any abatements. However a clause in the lease agreement stated that the plaintiffs were able to take proceedings to recover unpaid rents or other amounts owing. Therefore the lease's arbitration agreement did not apply to this particular dispute. The Court found that it did have jurisdiction, and the objection failed. Judgment Date: 25 August 2023