Homepace Ltd v Sita South East Ltd

Homepace Ltd v Sita South East Ltd

The surveyor’s certificate was not binding or effective because it was issued on the mistaken basis that the tenant was not entitled to extract or sell any 'Reserved Minerals' (building stone), contrary to the correct construction of the lease. The lease did not delegate the question of what constitutes 'Minerals' to the surveyor; thus, the court could review and found the certificate invalid.

Parties
Respondent/landlord: Homepace Limited; Appellant/tenant: SITA South East Limited
Jurisdiction
England and Wales
Judgment Date
15 January 2008
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Lease Interpretation, Expert Determination, Mining Leases, Landlord and Tenant Obligations
Land Law Contract Law Lease Interpretation Expert Determination Mining Leases Landlord and Tenant Obligations

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Parties

Homepace Limited

Respondent/landlord

SITA South East Limited

Appellant/tenant

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether the Surveyor’s Mineral Exhaustion Certificate issued under the lease was valid and binding
  2. 2 Whether the expert (surveyor) misapplied the definition of 'Minerals' under the lease
  3. 3 Whether the court can review the expert’s determination for error of law or construction

Ratio Decidendi

The surveyor’s certificate was not binding or effective because it was issued on the mistaken basis that the tenant was not entitled to extract or sell any 'Reserved Minerals' (building stone), contrary to the correct construction of the lease. The lease did not delegate the question of what constitutes 'Minerals' to the surveyor; thus, the court could review and found the certificate invalid.

Court Disposition

Appeal dismissed

Orders

  • The certificate issued by the surveyor is not binding or effective under clause 3.5.4.1 of the lease.
  • The tenant remains liable to pay the Certain Rent.