A break for landlords — recent Court of Appeal decision restores certainty
By Lynne Horay
The Court of Appeal has overturned the decision of the High Court relating to the refund of rents for a period after a break option has been exercised.
In Marks and Spencer plc v BNP Paribas Securities Services Trust Company (Jersey) Ltd & Another , the Court of Appeal overturned a decision of the High Court concerning the repayment of rents made by a tenant to a landlord before a break date, which relate to period after the break date. Last May, the High Court held that where a tenant exercised a right to break part way through a quarter, and where the rent had been paid for the full quarter, a term should be implied into the lease entitling the tenant to a refund of rent for the period from the break date to the end of the quarter. The decision caused some concern and commentators noted at the time that it was a departure from the widely held view that, in the absence of an express provision in the lease, a tenant will not be entitled to a refund of rents paid before a break date that relate to a period after the break date.
The Court of Appeal has now ruled that it is not appropriate to imply a term into the lease entitling the tenant to a refund of rent that it had paid in advance. Lady Justice Arden said: ‘…the lease, read as the whole against the relevant background, will not reasonably be understood to include such a term, and thus a test for an implied term is not met.’ …
Click on the link below to read the rest of the Goodman Derrick briefing.
News from Goodman Derrick
Briefings from Goodman Derrick
Are post-termination restrictions on a recruitment consultant enforceable where information is widely available on social media?
The High Court has held that six-month non-dealing and non-solicitation post-termination restrictions were enforceable by the recruitment business against a former employee.
No, according to the EAT, in the case of a group of agency workers who were assigned to one hirer for periods ranging from between six and 25 years.
Analysis from The Lawyer
Active financial management is vital, but with firms looking more closely at the process of debt and fee collection, the personal touch still counts
The lure of the law can kick in at any stage of life. We speak to four individuals who have made a radical switch to a legal career