Norwich Union Life & Pensions v Linpac Mouldings Ltd [2009] EWHC 1602 (Ch) (21 May 2009)

Norwich Union Life & Pensions v Linpac Mouldings Ltd [2009] EWHC 1602 (Ch) (21 May 2009)

Norwich Union's refusal of consent to assignment was reasonable because the risk of Linpac exercising the break clauses and terminating the leases was a legitimate commercial concern, and established case law confirms that personal break clauses are lost on assignment and cannot be revived by re-acquisition.

Citation
[2009] EWHC 1602 (Ch)
Parties
Claimant/respondent: Norwich Union Life and Pensions Limited; Defendant/appellant: Linpac Mouldings Ltd
Jurisdiction
England and Wales
Judgment Date
21 May 2009
Procedural Posture
Chancery Division Landlord and Tenant / Judgment After Trial
Outcome
Claimant's refusal of consent upheld; Linpac not entitled to exercise break clauses.
Legal Topics
Assignment of Leases, Break Clauses, Reasonableness of Landlord's Consent, Interpretation of Lease Provisions
Property Law Landlord and Tenant Assignment of Leases Break Clauses Reasonableness of Landlord's Consent Interpretation of Lease Provisions

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 13 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Norwich Union Life and Pensions Limited

Claimant/respondent

Linpac Mouldings Ltd

Defendant/appellant

Procedural Posture

Chancery Division Landlord and Tenant / Judgment After Trial

Legal Issues

  1. 1 Whether Norwich Union unreasonably withheld consent to assignment of the 1972 leases
  2. 2 Whether Linpac is entitled to exercise the break clauses after assignment or re-acquisition

Ratio Decidendi

Norwich Union's refusal of consent to assignment was reasonable because the risk of Linpac exercising the break clauses and terminating the leases was a legitimate commercial concern, and established case law confirms that personal break clauses are lost on assignment and cannot be revived by re-acquisition.

Court Disposition

Claimant's refusal of consent upheld; Linpac not entitled to exercise break clauses.

Orders

  • No order undoing the transfer of leases; Linpac cannot exercise break clauses even if legal estate becomes vested in it.