Assignment of leases – intra-group transfers – parent company AGAs – void transactions – liability of guarantor

Tindall Cobham 1 Ltd and others v ADDA Hotels (an Unlimited Company) and others [2014] EWCA Civ 1215 (5 September 2014)

This case concerned ss5 and 24(2) Landlord and Tenant (Covenants) Act 1995 (the Act) and is an important follow on from the decision of Lord Neuberger in K/S Victoria Street (a Danish Partnership) v House of Fraser (Stores Management) Ltd and others [2011] EWCA Civ 904.

Leases, Guarantors

Sale of property – VAT payable – liability for payment

CLP Holding Company Ltd v Singh and Kaur [2014] EWCA Civ 1103 (31 July 2014)

Although this case concerns the sale of a freehold interest in a commercial property we summarise it in brief to raise awareness as the principle involved has equal applications to the sale of leasehold interests. The sale of the property triggered an obligation to pay VAT on the purchase price. The issue for the court was which party was liable to bear the cost of the VAT. This involved the proper construction of the sale agreement.

Disputes & Litigation, Contracts

Sale of property – conditional on planning – long stop date – extension of time – entitlement to specific performance – relief from forfeiture of the deposit

This is another case concerning the sale of a freehold interest but again the issue raised is of general application and will be of particular interest to those of our readers who put together parcels of land with a view to commercial development. The claimant property owner (the seller) sought a declaration that a contract had terminated such that he was free to dispose of the property as he saw fit. The defendant developer (the buyer) counterclaimed for specific performance of the contract and the transfer of the property to itself. In the alternative it claimed relief against forfeiture of the deposit paid.

Disputes & Litigation, Contracts

Contract for the sale of a shopping centre – delay – extensions of time – damages

Staying with contracts for the sale of commercial properties for the moment we draw readers’ attention to this case to raise awareness. The buyer of a shopping centre claimed damages for the delay on the part of the seller.

Disputes & Litigation, Contracts

Breach of covenant – exemplary damages – loss of profits

Background - This case could almost be an examination question because it raises a wide range of landlord and tenant issues, many overlapping. We summarise it brief. Readers interested in the full details will need to refer to the (lengthy) judgment.

Disputes & Litigation, Reliefs & Remedies
Hot Topics

Commercial premises – acts of nuisance by tenants – claims by neighbours – liability of the landlord

The first Supreme Court decision created quite a stir in the legal press. It raised two issues. The first was the right approach when a court has to exercise its discretion and consider whether to grant an injunction or award damages where an infringement of a property right has been made out. The second was the extent to which it was possible to establish a right by prescription to commit what would otherwise be a nuisance by noise.

Disputes & Litigation, Reliefs & Remedies

Business lease renewal – negotiations for new tenancy – subject to contract – legal effect

The full report on this tantalising case is not yet to hand but brief details have emerged to whet the appetite. We summarise these briefly but will have to return to the case when the full facts are known

Leases, Renewal of Lease

Lease of commercial premises – user restrictions – competition law

This case concerns the impact of competition law. The judge was asked to determine a preliminary issue in an unopposed application for a renewal tenancy under the Landlord and Tenant Act 1954 (‘the Act’). The issue concerned the user clause of the proposed new lease.

Renewal of Lease, Tenancies

Contract for the sale of land – forged signature – ratification – specific performance

In November 2009 the defendant seller (S) agreed to sell a property to the claimant purchaser (P) for the sum of £155,000.

Sale & Purchase, Sale of Lease

Certificate of practical completion – development project – right to rescind – obligation to complete

The developer vendor (V) agreed to sell and the purchaser agreed to buy former agricultural barns once V had converted them for residential occupation.

Sale & Purchase, Rescission for Breach

Tenant insolvency – landlord’s obligation for empty property rates

In our February 2014 edition, Commercial Leases [2014] Volume 28 Issue 1 at p2020, we summarised a number of recent decisions focussing on what was meant by ‘occupation’ so as to give rise to an obligation on a landlord to discharge business rates on empty property. The issue surfaces again in this case where the tenant became insolvent and the liquidator disclaimed the lease.

Tenancies, Tenant Insolvency

Business lease renewal – opposition to a new tenancy – grounds 30(1)(a), (b) and (c) – alleged breach of covenants

In the case the Court of Appeal was required to consider whether the tenant was entitled to a new lease. The landlord opposed the grant of a new lease on several grounds.

Renewal of Lease, Tenancies

Commercial premises – action for possession – exceptional circumstances to justify proceedings in the High Court

This case serves as a timely reminder that generally all possession actions should be started in the local County Court save in exceptional circumstances.

Disputes & Litigation, Judgments & Orders

Development of airspace – nature and extent of demise of existing leases

Although this case essentially concerns residential premises it raises a point of general application and we summarise it in brief to raise awareness.

Disputes & Litigation, Rights & Easements