Scottish & Newcastle Plc v Raguz

Scottish & Newcastle Plc v Raguz

Section 17 of the 1995 Act requires landlords to serve protective notices within 6 months of each rent day to preserve claims against former tenants for rent arrears, including those arising from rent reviews. However, the indemnity under section 24(1)(b) of the 1925 Act is not limited to payments the assignor was legally compellable to make; it extends to all expenses or claims fairly and reasonably incurred as a result of the assignee’s default, including payments made to facilitate assignment and mitigate future exposure, even if the claimant prompted the landlord to serve section 17 notices.

Parties
Claimant/respondent: Scottish & Newcastle plc; Defendant/appellant: Zeljko Stephen Raguz
Jurisdiction
England and Wales
Judgment Date
06 March 2007
Procedural Posture
Civil Appeal / Judgment on Appeal From High Court
Outcome
Appeal dismissed; Respondent’s Notice dismissed
Legal Topics
Indemnity Under Lease Assignments, Effect of Landlord and Tenant (covenants) Act 1995, Section 17 Notice Requirements, Implied Indemnity Covenants, Rent Review Provisions
Landlord and Tenant Law Contract Law Indemnity Under Lease Assignments Effect of Landlord and Tenant (covenants) Act 1995 Section 17 Notice Requirements Implied Indemnity Covenants Rent Review Provisions

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 16 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Scottish & Newcastle plc

Claimant/respondent

Zeljko Stephen Raguz

Defendant/appellant

Procedural Posture

Civil Appeal / Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether section 17(2) notice under the Landlord and Tenant (Covenants) Act 1995 must be served within 6 months of each rent day to preserve liability of original tenant for reviewed rent
  2. 2 Whether the indemnity under section 24(1)(b) of the Land Registration Act 1925 covers payments made by the original tenant to the landlord even if not legally compellable
  3. 3 Whether the claimant can recover under the indemnity for sums paid after prompting the landlord to serve section 17 notices

Ratio Decidendi

Section 17 of the 1995 Act requires landlords to serve protective notices within 6 months of each rent day to preserve claims against former tenants for rent arrears, including those arising from rent reviews. However, the indemnity under section 24(1)(b) of the 1925 Act is not limited to payments the assignor was legally compellable to make; it extends to all expenses or claims fairly and reasonably incurred as a result of the assignee’s default, including payments made to facilitate assignment and mitigate future exposure, even if the claimant prompted the landlord to serve section 17 notices.

Court Disposition

Appeal dismissed; Respondent’s Notice dismissed

Orders

  • The appeal by the defendant is dismissed.
  • The Respondent’s Notice is dismissed.