The lease had been assigned by the claimant to the defendant and on again to a tenant who became insolvent. The landlord had recovered sums said to be due from the claimant who now sought an indemnity from the defendant. The defendant said that the claimant had overpaid, including sums excused by section 17 of the 1995 Act. A rent increase had been delayed, and the claimant had paid claimed arrears extending back more than six months after the new rent was settled. The House was asked whether the increased rent was to be taken as due from the date of the review, requiring service of the section 17 notice. The defendant said that section 17(4) anticipated service of a notice at a time before the sum had been fixed.
Held: The company’s appeal succeeded. A landlord need not serve a default notice unless the new rent has been fixed and the tenant has not yet paid it. Section 17 was very difficult to construe, and the draftsman had not thought it through. The most effective reading was to allow the meaning contended by the claimant, and allow their appeal.
Lord Hoffmann, Lord Hope of Craighead, Lord Scott of Foscote, Lord Walker of Gestingthorpe, Lord Brown of Eaton-under-Heywood
[2008] UKHL 65, [2008] 1 WLR 2494
Bailii, HL, Times
Landlord and Tenant (Covenants) Act 1995 5(2), Landlord and Tenant (Covenants) Act 1995 (Notices) Regulations 1995 SI 1995/2964, Land Registration Act 1925 24(1)(b)
England and Wales
Citing:
See Also – Scottish and Newcastle Plc v Raguz CA 24-Jul-2003
Leases had been granted. They had been assigned to the defendant who had assigned them again. The last assignee became insolvent and statutory demands were served on the claimant under the 1995 Act for rent. The claimant paid the sums due and now . .
See Also – Scottish and Newcastle Plc v Raguz ChD 27-Jul-2004
The claimant had previously assigned its interest in a lease to the defendant, who had in turn re-assigned it. The eventual tenant became insolvent, and the landlord had recovered sums from the claimant who now sought an indemnity under the covenant . .
At First Instance – Scottish and Newcastle Plc v Raguz ChD 11-Apr-2006
The defendant had taken assignments of the term of two underleases from the claimant, and then re-assigned them to a limited company with guarantors of the rent, and they in turn re-assigned the leases. The last company became insolvent. The . .
Appeal from – Scottish and Newcastle Plc v Raguz CA 6-Mar-2007
The claimant was the original tenant under two 99 year underleases granted in 1967, and assigned them to the defendant who then himself assigned them. The eventual assignee had become insolvent. The landlord recovered the rents from the claimant who . .
Cited – United 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 . .
Cited – South Tottenham Land Securities Ltd v R and A Millett (Shops) Ltd CA 1984
The court considered on what date the increased rent determined by a rent review fell due for payment.
Held: O’Connor LJ refused the appeal: ‘If the parties choose to put into a lease that rent is due on quarter days, then there are good . .
Cited – Fiona Trust and Holding Corporation and others v Privalov and others CA 24-Jan-2007
The court was asked whether when contracts have been induced by bribery and have been rescinded on discovery of the bribery, that constitutes a dispute which can be determined by arbitration in the context of a common form of arbitration clause.
Cited by:
Cited – In re J (Enduring Power of Attorney) ChD 12-Mar-2009
(Court of Protection) The donor executed a document purporting to appoint his wife to be his attorney, with an alternative. The document was based on a published precedent. The Public Guardian (PG) thought this provision of an alternative invalid. . .
see also – Scottish and Newcastle Ltd v Raguz ChD 10-Jun-2010
The defendant sought permission to appeal against the order made on the application for his bankruptcy, saying that he wished to bring new evidence. He said that he had offered sufficient security for the debt and the court should adjourn the . .
Lists of cited by and citing cases may be incomplete.
Landlord and Tenant
Updated: 01 November 2021; Ref: scu.277350