B&M Retail Ltd v HSBC Bank Pension Trust (UK) Ltd (Rev1) [2023] EWHC 2495 (Ch) (10 October 2023)

B&M Retail Ltd v HSBC Bank Pension Trust (UK) Ltd (Rev1) [2023] EWHC 2495 (Ch) (10 October 2023)

The judge at first instance correctly directed himself as to the law and carried out the required balancing exercise between the landlord's redevelopment interests and the tenant's security of tenure. Given the well-developed redevelopment plans, contractual obligations, and risk of losing the redevelopment opportunity, it was within the judge's discretion to include an immediately exercisable redevelopment break clause in the new lease. There was no error of law or principle justifying appellate intervention.

Citation
[2023] EWHC 2495 (Ch)
Parties
Claimant/appellant: B&M Retail Limited; Defendant/respondent: HSBC Bank Pension Trust (UK) Limited
Jurisdiction
England and Wales
Judgment Date
10 October 2023
Procedural Posture
Appeal / Judgment on Appeal From Central London County Court to High Court (chancery Division)
Outcome
Appeal dismissed
Legal Topics
Business Tenancies, Security of Tenure, Redevelopment Break Clauses, Landlord and Tenant Act 1954, Balancing Landlord and Tenant Interests
Landlord and Tenant Property Law Commercial Law Business Tenancies Security of Tenure Redevelopment Break Clauses Landlord and Tenant Act 1954 Balancing Landlord and Tenant Interests

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 4 Authorities cited 10 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

B&M Retail Limited

Claimant/appellant

HSBC Bank Pension Trust (UK) Limited

Defendant/respondent

Procedural Posture

Appeal / Judgment on Appeal From Central London County Court to High Court (chancery Division)

Legal Issues

  1. 1 Whether the inclusion of an immediately exercisable redevelopment break clause in a new lease under the Landlord and Tenant Act 1954 is consistent with the Act's purpose of providing security of tenure to business tenants
  2. 2 Whether the trial judge failed to properly balance the interests of landlord and tenant in granting such a clause

Ratio Decidendi

The judge at first instance correctly directed himself as to the law and carried out the required balancing exercise between the landlord's redevelopment interests and the tenant's security of tenure. Given the well-developed redevelopment plans, contractual obligations, and risk of losing the redevelopment opportunity, it was within the judge's discretion to include an immediately exercisable redevelopment break clause in the new lease. There was no error of law or principle justifying appellate intervention.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed. The order of HHJ Saunders stands: a new lease for five years with a rolling redevelopment break clause exercisable immediately on six months' notice.