Topland Portfolio No 1 Ltd v Smiths News Trading Ltd: CA 21 Jan 2014

The claimant landlord sought to recover arrears of its tenant’s rent after the tenant’s insolvency from the defendant under the defendant’s guarantee of the rent. The defendant had argued successfully at first instance that the guarantee had been avoided after the grant of a licence to alter the property.
Held: The appeal failed. The Licence had the clear potential to increase the obligations on the Lessee, and hence on the Surety in the event of the Lessee’s default. Nor had there been forbearance by the landlord

Hallett, Sullivan LJJ, Arnold J
[2014] EWCA Civ 18
England and Wales
CitedHolme v Brunskill CA 1877
The plaintiff had let his farm in Cumberland to a tenant farmer, along with a flock of sheep. When let, the farm extended to 234 acres and there were 700 sheep. The surety guaranteed the tenant’s obligation to re-deliver the flock of sheep in good . .
CitedSelous Street Properties v Oronel ChD 1984
The tenant had made unauthorised alterations to the premises by the construction of some toilets, in breach of covenant. The position was later regularised with a licence from the landlord, reciting that the lessee had made alterations to the . .
CitedAnkar Pty Ltd v National Westminster Finance (Australia) Ltd 1987
(High Court of Australia) The court consdered the situation where a surety was called after alteration of the contract secured: ‘to hold the surety to its bargain, the creditor must show that the nature of the alteration can be beneficial to the . .
CitedUnicomp Inc v Eurodis Electron Plc ChD 7-May-2004
The tenant (CEM) fell into financial difficulties. In breach of covenant the premises were occupied by a related company (Unibol) which started paying the rent. The landlord (Fortwilliam) accepted the rent for nearly two years after having been put . .
CitedHoward de Walden Estates Ltd v Pasta Place Ltd ChD 1995
The demised premises were originally used by the tenant as a delicatessen. The landlord granted the tenant successive licences permitting the installation of eight tables for the consumption of food and non-alcoholic beverages, permitting the . .

Lists of cited by and citing cases may be incomplete.

Contract, Landlord and Tenant

Updated: 28 November 2021; Ref: scu.520006