The applicant landlord sought a declaration regarding the interpretation of a rent re-set clause in a 99-year commercial ground lease.
The clause required the property to be valued 'as if it were unimproved'.
The landlord argued this meant the land should be valued as if it were unencumbered and available for freehold condominium development.
The respondent tenant argued the valuation must account for legal restrictions preventing such development.
The court held that the landlord was issue estopped from re-litigating the interpretation decided in a 1990 arbitration.
Alternatively, the court found that the correct interpretation of the lease required the valuation to account for the legal encumbrances restricting the tenant's ability to develop the property.
