$400K hangs on ‘humble comma’

It’s a case that hinges on a ‘‘humble comma’’ but a court’s answer could cost one government department more than $400,000.

The Ministry of Social Development leased space in a Gill St, New Plymouth building owned by Volumex Nominees.

Its lease ran from September 2004 to August 2017.

But during the term of that agreement, the owner and the ministry disagreed about what the lease agreement meant when it came to paying electricity for the primary heating, ventilation and air-conditioning plant.

The plant was on the roof and not in any of the areas the tenants occupied.

The lease talked about electricity supplied to and actually consumed on the premises.

But punctuation was key, as the way the lease was worded left it open to interpretation.

‘‘At the heart of this case is a humble comma,’’ Associate Judge Kenneth Johnston said in a decision from the High Court in Wellington.

Volumex sued for $411,000, claiming the ministry had no defence to the claim, but the judge disagreed.

After setting out the meanings each side gave to the lease terms, and the evidence supporting each interpretation, he said he wasn’t satisfied the Volumex interpretation was the only one possible, or even preferable.

The case is now expected to go to a full hearing of the issues, on a date yet to be set.