Roadside Group Ltd v Zara Commercial Ltd

Roadside Group Ltd v Zara Commercial Ltd

Roadside is not liable for the acts of its sub-tenant under the parking user covenant because the covenant is expressed in the active voice and lacks language extending liability to acts of others; section 79 does not override this intention. The term 'forecourt' in the underlease includes the areas to the north and west of the demised premises visible from the Broadway, but not the area to the south, as the parties intended to prevent the premises from appearing to be a used car lot.

Parties
Claimant/appellant: Roadside Group Limited; Defendant/respondent: Zara Commercial Limited
Jurisdiction
England and Wales
Judgment Date
30 July 2010
Procedural Posture
Civil Appeal / Judgment on Appeal From County Court
Outcome
Appeal allowed in part and dismissed in part
Legal Topics
Construction of Lease Covenants, Liability for Acts of Sub Tenants, Interpretation of 'forecourt' in Lease, Section 79 Law of Property Act 1925
Landlord and Tenant Law Property Law Construction of Lease Covenants Liability for Acts of Sub Tenants Interpretation of 'forecourt' in Lease Section 79 Law of Property Act 1925

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Parties

Roadside Group Limited

Claimant/appellant

Zara Commercial Limited

Defendant/respondent

Procedural Posture

Civil Appeal / Judgment on Appeal From County Court

Legal Issues

  1. 1 Whether Roadside is liable for the acts of its sub-tenant under the parking user covenant
  2. 2 Proper interpretation of 'forecourt' in the context of the underlease

Ratio Decidendi

Roadside is not liable for the acts of its sub-tenant under the parking user covenant because the covenant is expressed in the active voice and lacks language extending liability to acts of others; section 79 does not override this intention. The term 'forecourt' in the underlease includes the areas to the north and west of the demised premises visible from the Broadway, but not the area to the south, as the parties intended to prevent the premises from appearing to be a used car lot.

Court Disposition

Appeal allowed in part and dismissed in part

Orders

  • Declaration that Roadside is not liable for the acts of its sub-tenant under the parking user covenant
  • Declaration that the areas shaded red on the plan are part of the forecourt within the meaning of the covenant; parking cars for sale there is prohibited