BNM Parkstone LLP v Khazai & Anor [2022] EWHC 345 (Ch) (17 February 2022)

BNM Parkstone LLP v Khazai & Anor [2022] EWHC 345 (Ch) (17 February 2022)

The court found that no binding Renovation Agreement was concluded, the transfer of the HMO Business to Saffron by Mr Khazai constituted a repudiatory breach of contract, and the Claimant validly accepted the breach, terminating Mr Khazai's entitlement to profits from the HMO Business after the transfer. The Claimant is entitled to an account of monies received by the Defendants and appropriate relief.

Citation
[2022] EWHC 345 (Ch)
Parties
Claimant: BNM Parkstone LLP; First Defendant: Lucas Khazai; Second Defendant: Saffron HMO Limited
Jurisdiction
England and Wales
Judgment Date
17 February 2022
Procedural Posture
Business and Property Courts Chancery Division / Final Judgment After Trial
Outcome
Claim allowed in part; Defendants found in breach; Contract terminated by acceptance of repudiatory breach.
Legal Topics
Breach of Contract, Partnership Disputes, Management of HMO Business, Financial Reconciliation, Repudiatory Breach, Remedies
Commercial Law Property Law Partnership Law Breach of Contract Partnership Disputes Management of HMO Business Financial Reconciliation Repudiatory Breach +1 more

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Parties

BNM Parkstone LLP

Claimant

Lucas Khazai

First Defendant

Saffron HMO Limited

Second Defendant

Procedural Posture

Business and Property Courts Chancery Division / Final Judgment After Trial

Legal Issues

  1. 1 Existence and terms of the alleged Renovation Agreement
  2. 2 Determination of 'rent' payable after 31 March 2017
  3. 3 Entitlement to profits from the HMO Business after transfer to Saffron

Ratio Decidendi

The court found that no binding Renovation Agreement was concluded, the transfer of the HMO Business to Saffron by Mr Khazai constituted a repudiatory breach of contract, and the Claimant validly accepted the breach, terminating Mr Khazai's entitlement to profits from the HMO Business after the transfer. The Claimant is entitled to an account of monies received by the Defendants and appropriate relief.

Court Disposition

Claim allowed in part; Defendants found in breach; Contract terminated by acceptance of repudiatory breach.

Orders

  • Defendants to account for all monies received from the HMO Business after transfer to Saffron
  • Declaration that Mr Khazai's entitlement to profits ceased upon transfer