Hammersmatch Properties (Welwyn) Ltd v Saint -Gobain Ceramics and Plastics Ltd & Anor

Hammersmatch Properties (Welwyn) Ltd v Saint -Gobain Ceramics and Plastics Ltd & Anor

Damages for breach of the repairing covenant are limited by s.18(1) of the Landlord and Tenant Act 1927 to the diminution in value of the reversion, assessed as the difference between the value of the property in repair (£3,000,000) and the site value (£2,100,000), resulting in a cap of £900,000. Hammersmatch is also entitled to agreed schedule costs and interest, but not to additional loss of rent or insurance beyond the statutory cap.

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
Civil Commercial (dilapidations) / Judgment After Trial
Outcome
Claim allowed in part, subject to statutory cap on damages.
Legal Topics
Dilapidations, Damages, Diminution in Value, Repair Covenants, Section 18(1) Landlord and Tenant Act 1927, Loss of Rent, Professional Fees
Landlord and Tenant Property Law Contract Law Dilapidations Damages Diminution in Value Repair Covenants Section 18(1) Landlord and Tenant Act 1927 +2 more

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Parties

Hammersmatch Properties (Welwyn) Limited

Claimant

Saint-Gobain Ceramics and Plastics Limited

First Defendant

Saint-Gobain Abrasives Inc.

Second Defendant

Procedural Posture

Civil Commercial (dilapidations) / Judgment After Trial

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

Damages for breach of the repairing covenant are limited by s.18(1) of the Landlord and Tenant Act 1927 to the diminution in value of the reversion, assessed as the difference between the value of the property in repair (£3,000,000) and the site value (£2,100,000), resulting in a cap of £900,000. Hammersmatch is also entitled to agreed schedule costs and interest, but not to additional loss of rent or insurance beyond the statutory cap.

Court Disposition

Claim allowed in part, subject to statutory cap on damages.

Orders

  • Judgment for Hammersmatch for £900,000 as damages for diminution in value under s.18(1) Landlord and Tenant Act 1927.
  • Hammersmatch awarded £20,320.40 for schedule costs.