The Archive · 1940

Before Judge P. Grant Jones

(Dismissed).

Shanghai, Dee. 4.

'The English aw. that all con-voyances of land unless made. by deed are vold was upheld by Judge P. Grant Jones in H. M. Supreme Court yesterday in dismissing' with costs against plainti" an action brought by Mr, Chi Hwa-nan, theatre promoter, against China Theatres Limited.' The aetion_ was one. for speeitie performance of an agreement alleged to relate to the lease of two theatres, the Empire and Kwangming in Tientsin, and damages from April 1, fast, of $6,000 per month Tientsin currency. Mr. H, D. Rodger appeared for plainti' while Mr. Ranald Me-Donald represented the defendants, Plainti's statement of claim, which was read by Mr. Rodger, described the defendant a5 a British public China company with registered amices at f2n Srechuen Road nnd the owner fof the land and building in Tientsin Known as the Empire Theatre and lessee under long lease of the Kwan. ming. Theatre.

'On January 8, 1040, the star continued, defendants' entered written agreement of lease forthe two theatres for five years from April 1, last, at a total monthly rental of T$42088.20 and undertook to give possession of the premises: to plaintitt fon April 1, Mer Rodger. sviggested that the agreement had all the elements of a tease and would be binding if one was not drawn up later, as the parties originally. intended, Mr. Rodger told: the court that a it raft agreement made between the parties provided for a penalty of '$5,000 as liquidated damages for failure on either side to carry out the terms of the agreement, Counsel submitted that payment of the damages would In no way hinder specific performance of the original "agree ment, The reply to the statement of claim which Mr. Rodger also read claimed that the agreement was a preliminary. contract which contemplated the subsequent execution of a lease and stated that in the event the lessor should sell the Empire 'Theatre during the tenure of the lease, that the lessee would agree to vacate the premises when notified and the lessor would refund to him the proportionate amount paid by' them for rebuilding or repairs which have been approved by the lessor.

Defendants did not admit the allegation that they hod refused to give laintif' possession of the Kwangming 'Theatre on April 1, Jast, oF that they ave still retusing' to do. 50, The Empire Theatre, it was stated, was sold on oF abet March 16, last, by defendants to the Peninsular Trading, Company of Liza Building.

The reply also stated that defendants were at all times willing to lease the ing Theatre to. plaintiff in Tu conclusion the reply submitted that plaintiff' was not 1 titled to any relief claimed in the action After reading the reply, counsel said he would show that defendants promised to submit the draft of a Tease, andi although requested to do '50 on several subsequent occasions by his client, did not do so until June 28, three months after the theatres should have been handed over. In March, he said, plainti advised defendants that if the lease was not received the original agreement would be binding.

Explaining how the figure of '¥$4,009.30 as total rental for the theatres was arrived al, counsel sale hat his client conducted certain "ne-defendants for the not wanting {9 pay more th while defendants claimed was $250,000. On the last figure, he said, it was Suggested that the rental should be ten per cent. of the last figure, namely $25,000 'a year and 324,000 for the Kwangiing Theatre, '$49,000 per annum payable Counsel went on to. say subsequently asked month for the Kwanemingt instead of §2,000, Mr. Rodger went on to say thal inti deposited $10,000 down and Was required to put up an additional $20,000 when he secured possession of the premises of the two theatres, The money was paid on January. a, he added, but plaintiff had not. got pos~ Session ut either one of the two theatres. Mr. Rodger denied that the Empire' Theatre had been sold March ast Two piles of correspondence exchanged between the parties and their Tavevers usin, Mr. Erin de

Text read from the printed page and cleaned; old type leaves the occasional error.

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