Hammersmatch Properties (Welwyn) Ltd v Saint -Gobain Ceramics and Plastics Ltd & Anor [2013] EWHC 1161 (TCC) (14 May 2013)

Hammersmatch Properties (Welwyn) Ltd v Saint -Gobain Ceramics and Plastics Ltd & Anor [2013] EWHC 1161 (TCC) (14 May 2013)

The measure of damages for breach of repairing covenant is capped by the diminution in value of the landlord's reversion under s.18(1) Landlord and Tenant Act 1927. The reasonable cost of necessary works and professional fees is recoverable only up to that cap. The court determined the appropriate standard of repair, the reasonable cost of works, and the diminution in value, awarding damages accordingly.

Citation
[2013] EWHC 1161 (TCC)
Parties
Claimant: Hammersmatch Properties (Welwyn) Limited; First Defendant: Saint-Gobain Ceramics and Plastics Limited; Second Defendant: Saint-Gobain Abrasives Inc.
Jurisdiction
England and Wales
Judgment Date
14 May 2013
Procedural Posture
Dilapidations Claim (commercial Lease) / High Court Trial Judgment
Outcome
Claim allowed in part, damages awarded subject to statutory cap under s.18(1) Landlord and Tenant Act 1927.
Legal Topics
Dilapidations, Measure of Damages, Section 18(1) Landlord and Tenant Act 1927, Repairing Covenants, Diminution in Value, Professional Fees, Loss of Rent, Insurance Costs
Property Law Landlord and Tenant Law Commercial Law Dilapidations Measure of Damages Section 18(1) Landlord and Tenant Act 1927 Repairing Covenants Diminution in Value +3 more

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 11 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Hammersmatch Properties (Welwyn) Limited

Claimant

Saint-Gobain Ceramics and Plastics Limited

First Defendant

Saint-Gobain Abrasives Inc.

Second Defendant

Procedural Posture

Dilapidations Claim (commercial Lease) / High Court Trial Judgment

Legal Issues

  1. 1 What works should Saint-Gobain have carried out under the Lease?
  2. 2 What is the reasonable and proper cost of the necessary works?
  3. 3 What is the reasonable and proper cost of professional fees?

Ratio Decidendi

The measure of damages for breach of repairing covenant is capped by the diminution in value of the landlord's reversion under s.18(1) Landlord and Tenant Act 1927. The reasonable cost of necessary works and professional fees is recoverable only up to that cap. The court determined the appropriate standard of repair, the reasonable cost of works, and the diminution in value, awarding damages accordingly.

Court Disposition

Claim allowed in part, damages awarded subject to statutory cap under s.18(1) Landlord and Tenant Act 1927.

Orders

  • Saint-Gobain to pay Hammersmatch damages for breach of repairing covenant, limited to the diminution in value of the reversion as determined by the court.
  • Professional fees awarded as agreed percentages of works costs.