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Category Archives: Case Updates

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Guarantor pays nothing in DIY store case

The recent Court of Appeal case involving Topland Limited and Smiths News Trading Limited was a salutary lesson about the strict rules that protect guarantors and the perils of forgetting them.  The facts of the case were relatively simple:  Topland owned a commercial property, leased to the rather aptly named Payless DIY Ltd, which became

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Insolvency and Deposits: Get your priorities right

Landlords often ask for a rent deposit when they grant a new lease, or consent to an assignment, especially if the incoming tenant is of shaky covenant strength.  This provides security against possible future default. If a tenant becomes insolvent then this is exactly the sort of situation where a landlord would want to make

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A slip-up by the pool? Collateral warranties held to fall within the Construction Act for the first time

Have you noticed how often swimming pools feature in important cases? Consider, for example, the 2012 case of Walter Lilly & Co Ltd v Mackay which clarified several issues commonly encountered in construction disputes and involved a luxury home with a basement pool. The recent High Court decision in Parkwood Leisure Ltd v Laing O’Rourke

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Can’t catch a break – break clause case set for appeal

You may remember that, in an unexpected decision back in May, the High Court ruled that a tenant, M&S, was entitled to a repayment from its former landlord of approximately £1.1m of rent and other charges paid in advance, following the exercise of a break option part way through the quarter.  In an unsurprising twist

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The tenancy deposit scheme strikes again

A recent decision by the Court of Appeal shows that the tenancy deposit scheme is still a source of aggravation in the residential sector. The facts of the case were simple. Superstrike Ltd granted an assured shorthold tenancy to Mr Rodrigues on 8 January 2007 for a fixed term of just under a year. Rodrigues

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Stand and Deliver – Actual sale of freehold required for landlord to operate break clause linked to overage payment

HFI Farnborough LLP and others v Park Garage Group plc [2012] EWHC 3577 (Ch) HFI was the landlord of four petrol stations and Park was the tenant.  The leases contained a break clause permitting the landlord to terminate on three months’ notice. However, in each case there was a separate overage agreement which placed restrictions

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Breaking up is hard to do – Operation of conditional break clause ineffective without actual payment of break penalty

Canonical UK Ltd v TST Millbank LLC [2012] EWHC 3710 Canonical was TST’s tenant under a lease. The lease contained a break option entitling Canonical to terminate the lease on six months’ notice provided the rent was paid up to and including the break date, there was no breach of covenant, and Canonical paid one

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Signed, sealed, delivered – service deemed to take place on date of receipt rather than date of posting, in absence of contrary intention

Freetown Limited v Assethold Limited [2012] EWCA Civ 1657 Freetown and Assethold owned neighbouring buildings in London. Freetown served notices on Assethold under the Party Wall Act 1996 in relation to proposed development works. The parties each appointed a surveyor and those surveyors in turn applied to a third party surveyor to make an award.

Posted in Case Updates, Real Estate News

Residential Service Charge decision causes a stir

It’s not often that tenant consultation processes on residential service charges set pulses racing. However, the recent Supreme Court judgment in Daejan Investments v Benson & Others may at least provoke some heated debate. In a split Court, in which the majority was charged with “subverting Parliament’s intentions” by dissenting judges, a decision was reached

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Campbell v Daejan: full service charge recovery not a given

Ed John considers the implications of the recent case of Campbell v Daejan On 20 November 2012, the Court of Appeal re-emphasised that there is no implication in service charge provisions that a landlord can recover 100% of its costs. In the case of Campbell v Daejan , the tenant was able successfully to argue

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Residential landlords risk losing deposits and paying a penalty if they fail to give tenants the required information

Picture this:  a difficult tenant decides that they don’t want to leave the property at the end of its lease and the landlord can’t wait to see the back of them.  The landlord wants to recover possession and use the tenant’s deposit to pay for any damage that the troublesome tenant has caused. It sounds

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Supreme Court stops occupiers from enfranchising commercial premises

In a brave move, the Supreme Court has allowed appeals by two London landlords in Day v Hosebay and Howard de Walden v Lexgorge and clarified what can reasonably be called a house under the Leasehold Reform Act 1967. Senior Associate, Tim Reid, applauded the unanimous decision for its clarification of the law: “It has

Posted in Case Updates, Planning, Real Estate, Real Estate News

Keeping It Real Estate: News and trends in UK real estate, disputes and planning law

“Keeping It Real Estate” has been created by Hogan Lovells’ UK Real Estate group.  It brings together the expertise of over 75 partners and associates covering all aspects of transactional, disputes and planning in the UK market.  The diversity of our work for landlords, corporate occupiers, banks, developers, retailers and local authorities, to name but a

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Beware of the slippery steps

Drysdale v Hedges (2012) 162 N.L.J. 1056 Mr Hedges was Ms Drysdale’s landlord of a flat. Ms Drysdale sustained serious injuries when she fell down the steps leading to the flat and she claimed damages from Mr Hedges in negligence and occupiers’ liability and under the Defective Premises Act 1972, arguing that his actions in

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Landlord and Tenant: Insurance – landlord fails to recover premiums after failing to insure joint names with tenant

Green v 180 Archway Road Management Co Ltd [2012] UKUT 245 In July 2012, the Upper Tribunal decided that a landlord could not recover insurance premiums from its tenant for four out of five years because it had failed to insure the building in accordance with the lease covenants. The lease required the landlord to

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Removal of door handle made injury foreseeable

Alexander v Freshwater Properties Ltd [2012] EWCA Civ 1048 Ms Alexander was the tenant of a flat within a block managed by Freshwater. She was injured when the front door to the block shut on her hand. Ms Alexander bought proceedings against Freshwater and against the builder engaged by them to carry out a refurbishment

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Rateable occupation must be beneficial to occupier

Makro Properties Ltd v Nuneaton and Bedworth BC [2012] EWHC 2250 (Admin) Makro was the tenant of a wholesale warehouse in Coventry. The Local Authority sought to recover empty rates from Makro for the years 2009 and 2010. It was accepted by Makro that the property was empty for part of that period. However, Makro

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Notification by management company of revised car parking scheme

Samambwa v Countrywide Managing Residential Ltd [2012] EWCA Civ 1133 Mr S was a long leaseholder of a flat. The lease included a right to park in an allocated parking space. The lease contained a duty on the part of the management company to manage the car parking spaces. In practice it was often difficult

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Consent to assign not unreasonably delayed

E.ON UK Plc v Gilesports Ltd [2012] EWHC 2172 (Ch) E.ON was Gilesports’ landlord of a retail shop. Gilesport sought to assign the lease and requested E.ON’s consent by email. The email did not state that there was an urgency in respect of the transaction. Gilesports provided financial information in respect of the assignee on

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Landlord and tenant case update: Break Options

Landlord and tenants often include break clauses in a lease which allow either or both parties to terminate the lease midway through the lease. Usually the break clause is for the benefit of the tenant who is nervous about committing to rent liabilities for a long period in one location. One issue which recently came