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in May a tenant finally got a lucky break in a case* on break clauses.
The High Court
decided that where a break date falls in the middle of a quarter, in the
absence of express wording a term can be implied requiring the landlord to
repay to the tenant rent (and in this case insurance and service charge) paid
for the period after the break date.
This meant
the tenant was entitled to a repayment of approximately £1.1m.
It was "eminently
reasonable" to do so, said Morgan J and was "obviously what the
parties meant" even though there was no specific obligation to repay.
The
landlord has now been granted leave to appeal, so that reasoning will be tested
in a Court of Appeal duel set for March 2014.
Will this
turn out to have been a false dawn for tenants...?
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