Game over. Administrators must pay rent as an administration expense on a daily basis
By Julie Gattegno
The Court of Appeal has ruled that rent is an administration expense, payable on a daily basis for the period during which premises are retained for the benefit of the administration (Pillar Denton Ltd v Jevis & Ors, 24 February 2014).
This decision has removed the injustice caused by companies being placed into administration just after the quarter day, to avoid liability for a whole quarter’s rent being treated as an expense, and overrules two previous decisions — Goldacre and Luminar. (Under Goldacre, if rent fell due during a quarter and administrators were using the property for the purposes of the administration, the entire quarter’s rent was payable as an expense. However, under Luminar, if rent fell due before a company went into administration, none of the rent for that quarter was payable as an administration expense, even if the property was being used for the purposes of the administration.) …
Click on the link below to read the rest of the Nabarro briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Analysis from The Lawyer
Nabarro senior partner and self-confessed “IT geek” Graham Stedman is heralding a major set of investments in technology ahead of the firm’s move to 125 London Wall this year.
Clients are more willing to bring claims against professional service providers but the risk to defendants is not as dramatic as it might seem