Monday, 4 November 2013

Breaking Bad

Back 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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