Bellow Properties Ltd v Master Fellows & Scholars Of College Of Holy & Undivided Trinity Within Town & University Of Cambridge (Trinity College) [2001] EWCA Civ 1386 (31 July 2001)

Bellow Properties Ltd v Master Fellows & Scholars Of College Of Holy & Undivided Trinity Within Town & University Of Cambridge (Trinity College) [2001] EWCA Civ 1386 (31 July 2001)

The critical words in clause 2 of the lease should be construed as referring to a covenant to erect a building in accordance with clauses 5(3) and (4) of the lease, not as requiring the use of the specific plans approved in 1970. The notional lease for rent review purposes should be on the same terms and incidents as the 1970 lease, without introducing a new term relating to pre-1970 plans.

Citation
[2001] EWCA Civ 1386
Parties
Claimant/respondent: Bellow Properties Ltd; Defendant/appellant: The Master Fellows and Scholars of the College of the Holy and Undivided Trinity within the Town and University of Cambridge (Trinity College)
Jurisdiction
England and Wales
Judgment Date
31 July 2001
Procedural Posture
Appeal From Chancery Division (commercial Lease Dispute) / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Commercial Leases, Rent Review Clauses, Contract Interpretation
Property Law Landlord and Tenant Commercial Leases Rent Review Clauses Contract Interpretation

Case Brief

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Parties

Bellow Properties Ltd

Claimant/respondent

The Master Fellows and Scholars of the College of the Holy and Undivided Trinity within the Town and University of Cambridge (Trinity College)

Defendant/appellant

Procedural Posture

Appeal From Chancery Division (commercial Lease Dispute) / Court of Appeal Judgment

Legal Issues

  1. 1 Proper construction of a rent review provision in a commercial lease
  2. 2 Whether the hypothetical lease for rent review purposes should include a covenant to erect a building in accordance with pre-1970 approved plans

Ratio Decidendi

The critical words in clause 2 of the lease should be construed as referring to a covenant to erect a building in accordance with clauses 5(3) and (4) of the lease, not as requiring the use of the specific plans approved in 1970. The notional lease for rent review purposes should be on the same terms and incidents as the 1970 lease, without introducing a new term relating to pre-1970 plans.

Court Disposition

Appeal allowed

Orders

  • Declaration that the critical words in clause 2 are to be construed as referring to a covenant to erect a building in accordance with clauses 5(3) and (4) of the lease.
  • Costs awarded to the appellant in the sum of £8,540; appellant's costs below to be agreed or assessed.