Hemingway Realty Ltd v Clothworkers' Company

Hemingway Realty Ltd v Clothworkers' Company

The lease expressly provides that the right to review the rent is exercisable by the landlord alone. There is no basis in the language of the lease or in commercial purpose to imply a mutual or mandatory right of review. The rent does not revert to the 1982 level if no review is initiated; it remains at the last reviewed figure until the landlord exercises the right to review.

Parties
Claimant: Hemingway Realty Limited; Defendants: The Master Wardens and Commonalty of Freemen of the Art or Mystery of Clothworkers of the City of London (commonly called the Clothworkers’ Company)
Jurisdiction
England and Wales
Judgment Date
08 March 2005
Procedural Posture
Civil / Judgment After Trial of Originating Summons (part 8 Claim)
Outcome
Claim dismissed
Legal Topics
Lease Construction, Rent Review Clauses, Contract Interpretation
Land Law Landlord and Tenant Lease Construction Rent Review Clauses Contract Interpretation

Case Brief

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Parties

Hemingway Realty Limited

Claimant

The Master Wardens and Commonalty of Freemen of the Art or Mystery of Clothworkers of the City of London (commonly called the Clothworkers’ Company)

Defendants

Procedural Posture

Civil / Judgment After Trial of Originating Summons (part 8 Claim)

Legal Issues

  1. 1 Whether the rent review clause in the lease can be operated by the tenant or only by the landlord
  2. 2 Whether the rent reverts to the 1982 level if no review is initiated at a review date

Ratio Decidendi

The lease expressly provides that the right to review the rent is exercisable by the landlord alone. There is no basis in the language of the lease or in commercial purpose to imply a mutual or mandatory right of review. The rent does not revert to the 1982 level if no review is initiated; it remains at the last reviewed figure until the landlord exercises the right to review.

Court Disposition

Claim dismissed

Orders

  • Declarations in favour of the Defendants as sought
  • Costs to be determined if not agreed