London Trocadero (2015) LLP v Picturehouse Cinemas Ltd & Ors [2025] EWHC 1247 (Ch) (23 May 2025)

London Trocadero (2015) LLP v Picturehouse Cinemas Ltd & Ors [2025] EWHC 1247 (Ch) (23 May 2025)

The lease requires the tenant to pay insurance rent calculated by reference to the gross premium paid by the landlord, which includes any commission rebated to the landlord by brokers. There is no implied term excluding such commission from the calculation. The landlord's failure to maintain the sprinkler system did not relieve the tenant from liability for insurance rent, as the increased premiums were not shown to be directly attributable to the breach. Insurance obtained with excesses and co-insurance provisions still satisfied the lease's requirement for cover of the full costs of reinstatement. The 2014 Settlement Deed did not settle the tenant's counterclaim. The tenant has no...

Citation
[2025] EWHC 1247 (Ch)
Parties
Claimant: London Trocadero (2015) LLP; First Defendant: Picturehouse Cinemas Limited; Second Defendant: Gallery Cinemas Limited; Third Defendant: Cineworld Cinemas Limited
Jurisdiction
England and Wales
Judgment Date
23 May 2025
Procedural Posture
Landlord and Tenant Dispute / High Court Chancery Division, Post Summary Judgment, Determination of Counterclaim
Outcome
Tenant's counterclaim dismissed.
Legal Topics
Insurance Rent, Lease Interpretation, Implied Terms, Restitution, Fire Safety Obligations, Settlement Agreements
Property Law Landlord and Tenant Commercial Law Insurance Rent Lease Interpretation Implied Terms Restitution Fire Safety Obligations +1 more

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Parties

London Trocadero (2015) LLP

Claimant

Picturehouse Cinemas Limited

First Defendant

Gallery Cinemas Limited

Second Defendant

Cineworld Cinemas Limited

Third Defendant

Procedural Posture

Landlord and Tenant Dispute / High Court Chancery Division, Post Summary Judgment, Determination of Counterclaim

Legal Issues

  1. 1 Whether insurance rent under the leases includes commission rebated to the landlord ('Landlord's Commission')
  2. 2 Whether the landlord's failure to maintain the sprinkler system increased insurance premiums and thus affected the tenant's liability for insurance rent
  3. 3 Whether the insurance obtained covered the 'full costs of rebuilding or reinstating' as required by the lease, given excesses and co-insurance clauses

Ratio Decidendi

The lease requires the tenant to pay insurance rent calculated by reference to the gross premium paid by the landlord, which includes any commission rebated to the landlord by brokers. There is no implied term excluding such commission from the calculation. The landlord's failure to maintain the sprinkler system did not relieve the tenant from liability for insurance rent, as the increased premiums were not shown to be directly attributable to the breach. Insurance obtained with excesses and co-insurance provisions still satisfied the lease's requirement for cover of the full costs of reinstatement. The 2014 Settlement Deed did not settle the tenant's counterclaim. The tenant has no...

Court Disposition

Tenant's counterclaim dismissed.

Orders

  • Tenant's claim for repayment of insurance rent dismissed.
  • Tenant's claim regarding the sprinkler system dismissed.