Manchester Airport & Anor v Radisson Hotel Manchester Ltd & Anor

Manchester Airport & Anor v Radisson Hotel Manchester Ltd & Anor

The phrase 'prevailing commercial rates' in Clause 5.3.2 of the Lease means the prevailing commercial rates of the private utility networks of the major UK airports, defined to include UK airports receiving international passenger flights, as this comparator most closely reflects the contractual arrangements and factual reality between the parties at the time of agreement.

Parties
First Claimant: Manchester Airport; Second Claimant: MAG Investment Assets Limited; First Defendant: Radisson Hotel Manchester Limited; Second Defendant: Union Investment Real Estate GmbH
Jurisdiction
England and Wales
Judgment Date
09 December 2020
Procedural Posture
Civil (property/contract) / Trial of Preliminary Issue
Outcome
Preliminary issue determined in favour of the Claimants' construction, subject to hearing further from counsel on consequential matters.
Legal Topics
Lease Interpretation, Utilities Covenants, Commercial Rates, Private Utility Networks
Landlord and Tenant Contract Law Lease Interpretation Utilities Covenants Commercial Rates Private Utility Networks

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Parties

Manchester Airport

First Claimant

MAG Investment Assets Limited

Second Claimant

Radisson Hotel Manchester Limited

First Defendant

Union Investment Real Estate GmbH

Second Defendant

Procedural Posture

Civil (property/contract) / Trial of Preliminary Issue

Legal Issues

  1. 1 What is the meaning of 'prevailing commercial rates' in Clause 5.3.2 of the Lease for electricity and gas supplied by the landlord?
  2. 2 Should the comparator be private airport utility networks or public commercial supply rates?

Ratio Decidendi

The phrase 'prevailing commercial rates' in Clause 5.3.2 of the Lease means the prevailing commercial rates of the private utility networks of the major UK airports, defined to include UK airports receiving international passenger flights, as this comparator most closely reflects the contractual arrangements and factual reality between the parties at the time of agreement.

Court Disposition

Preliminary issue determined in favour of the Claimants' construction, subject to hearing further from counsel on consequential matters.