Reichman and Another v Beveridge: CA 13 Dec 2006

The defendants were tenants of the claimant. They vacated the premises and stopped paying the rent. The claimant sought payment of the arrears of rent. The defendants said that the claimants should have taken steps to reduce their damages by seeking another tenant.
Held: The defendant’s appeal against a ruling that a landlord was under no duty to mitigate his loss failed. The need to mitigate a loss arose for other breaches of covenant, but not in the case of arrears of rent.
Lloyd LJ said: ‘on the present state of English law, the . . defence on quantum is not open to him. I do not decide whether or not repudiation plays any, and if so what, part in the English law of landlord and tenant. That is not directly in issue before us. . . There is, however, no case in English law that shows that a landlord can recover damages from a former tenant in respect of loss of future rent after termination, and there is at least one case which decides that he cannot. In those circumstances, either damages are not an adequate remedy for the landlord, or at least the landlord would be acting reasonably in taking the view that he should not terminate the lease because he may well not be able to recover such damages. In principle, moreover, if the landlord chooses to regard it as up to the tenant to propose an assignee, sub-tenant or, if he wishes, a substitute tenant under a new tenancy, rather than take the initiative himself, that is not unreasonable, still less wholly unreasonable.’
Lord Justice Auld, Lord Justice Rix and Lord Justice Lloyd
[2006] EWCA Civ 1659, [2007] Bus LR 41
Times, Bailii
England and Wales
Citing:
CitedBoyer v Warbey CA 1953
The tenant had vacated without notice, whereas he was bound to give three months’ notice. The landlord did re-let, and sued for the rent due up to the date of the re-letting (some three months) which the tenant resisted, claiming that the landlord . .
CitedTotal Oil Great Britain Ltd v Thompson Garages (Biggin Hill) Ltd CA 1972
The defendants held a lease from the plaintiffs of a garage, the lease containing a solus-site agreement, preventing the defendants from selling any petrol but the plaintiffs’ and requiring the defendants to pay for petrol on delivery. The . .
CitedHammersmith and Fulham London Borough Council v Monk HL 5-Dec-1991
One tenant of two joint tenants of a house left and was granted a new tenancy on condition that the existing one of the house, still occupied by her former partner, was determined. She gave a notice to quit as requested, the council claimed . .
CitedVickers and Vickers v Stichtenoth Investments Pty Ltd 1989
(Supreme Court of South Australia) The court considered whether a landlord faced with a tenant who had vacated the property was under a duty to mitigate his losses: ‘There is no reason why in modern times mitigation of damage should not apply. It is . .
CitedWhite and Carter (Councils) Ltd v McGregor HL 6-Dec-1961
Contractor not bound to accept Renunciation
Mr McGregor contracted with the appellants for them to display advertisements for three years on litter bins. The contract was made on his behalf by an employee, without specific authority. On the day it was made, he sought to cancel the contract. . .
See AlsoReichmann and Another v Gauntlett and Another CA 20-Jun-2006
Application for leave to appeal. Defendant tenant arguing that landlord had duty to mitigate losses after tenant vacates premises. Leave granted. . .
CitedUnited Scientific Holdings v Burnley Borough Council HL 1978
The House was asked whether a failure by a lessor to keep strictly to the timetable laid down in a rent review clause in a lease necessarily deprived the lessor of the benefit of the rent review.
Held: A stipulation as to time in an option . .
CitedNational Carriers Ltd v Panalpina (Northern) Ltd HL 11-Dec-1980
No Frustration of Lease through loss of access
The tenant’s access to the premises was closed by the local authority because it passed by a derelict and dangerous building. The tenant argued that its tenancy was frustrated.
Held: The lease was not frustrated. The lease had a term of ten . .
CitedWhite and Carter (Councils) Ltd v McGregor HL 6-Dec-1961
Contractor not bound to accept Renunciation
Mr McGregor contracted with the appellants for them to display advertisements for three years on litter bins. The contract was made on his behalf by an employee, without specific authority. On the day it was made, he sought to cancel the contract. . .
CitedJervis v Harris CA 9-Nov-1995
A provision in the lease obliged a tenant to carry out repairs and provided that if he did not do so, the landlord might do the repairs and recover from the tenant the costs and expenses of doing so.
Held: The provision was not a penalty. The . .
CitedHussain v Mehlman CC 5-Mar-1992
(County Court) The defendant landlord granted the plaintiff a three year assured shorthold tenancy. He now appealed a finding that he was in breach of an implied covenant to maintain the space heating, and otherwise. The tenant had returned the . .
CitedBhogal v Cheema 1999
The court considered a claim by the landlord that a surety under a lease which had been disclaimed by the liquidator of the tenant company was liable for rent arrears. The surety replied that after the disclaimer, the landlord was obliged to . .
CitedGator Shipping Corporation v Trans-Asiatic Oil Ltd, The Odenfeld 1978
The parties entered into charter for a basic period of ten years. After the first two years the charter hire rate was to be assessed by the London Tanker Broker Panel, subject to a minimum. A side letter from the owners to the defendants contained a . .
CitedAttica Sea Carriers Corporation v Ferrostaal Poseidon Bulk Reederei GmbH, The Puerto Buitrago CA 1976
The parties entered into a charterparty by demise of a bulk carrier. It was in a state of disrepair. The owners required the charterers to repair it before redelivery, and claimed hire losses until it was returned repaired. The extensive repairs . .
CitedOcean Marine Navigation Ltd v Koch Carbon Inc (‘The Dynamic’) ComC 31-Jul-2003
The arbitrator had held in favour of the charterers that the owners were limited to damages and could not claim hire. The owners appealed.
Held: The arbitrator had not applied the law correctly in rejecting the owners’ claim to hire, and he . .
CitedWalls v Atcheson CCP 19-Apr-1826
The tenant took premises for a year, occupied them and paid rent for a quarter and then left. The landlord re-let the premises a few weeks later, at a slightly lower rent, and they remained let for some months, but they were empty for the last two . .
CitedNorwich Union Life Insurance Society v Low Profile Fashions Ltd CA 1952
The landlord claimed for arrears of rent. The tenancy had been assigned quickly three times. The tenant argued that the landlord should be restrained from pursuing a remedy against the original tenant when, with the new alternative remedies against . .
CitedTall-Bennett and Co Pty Ltd v Sadot Holdings Pty Ltd 1988
(Supreme Court of New South Wales) The tenant abandoned the premises. When the landlord sought recovery of the subsequent rents, the tenant argued that he had a duty to mitigate his losses.
Held: The tenant failed. If the tenant wants to go . .
CitedProgressive Mailing House Pty Ltd v Tabali Pty Ltd 12-Mar-1985
Austlii (High Court of Australia) Landlord and Tenant – Torrens system land – Unregistered lease – Effect – Covenant to pay rent – Breach – Re-entry – Right of landlord to damages for loss of benefit of covenant . .
CitedMaridakis v Kouvaris 1975
(Supreme Court of the Northern Territory, Australia) The tenant walked out on a lease. He returned the keys and left the premises. The landlord then closed and secured the premises and sought a replacement tenant. The landlord was, however, very . .
CitedHighway Properties Ltd v Kelly, Douglas and Co 1-Feb-1971
(Supreme Court of Canada) Landlord and tenant – Repudiation by tenant of lease of certain premises and its consequent abandonment of said premises – Possession taken by landlord with contemporaneous assertion of right to full damages according to . .
CitedClea Shipping Corp v Bulk Oil International, The Alaskan Trader (No 2) 1984
The 24 month charterparty vessel suffered a major engine breakdown after nearly a year. The repairs would take several months. The charterers said they had no further use for the vessel but the owner did the repairs and sought to hold the charterers . .

Cited by:
CitedBroadway Investments Hackney Ltd v Grant CA 20-Dec-2006
The respondent had taken a tenancy of premises from the local authority. The ground floor was for use as a shop, and the first was residential. He had previously taken a licence and had refurbished the premises. The authority sold the freehold to . .

These lists may be incomplete.
Updated: 02 June 2021; Ref: scu.246994