Legends Surf Shops Plc v Sun Life Assurance Society Plc [2005] EWHC 1438 (Ch) (14 July 2005)

Legends Surf Shops Plc v Sun Life Assurance Society Plc [2005] EWHC 1438 (Ch) (14 July 2005)

The lease requires an Authorised Guarantee Agreement from the outgoing tenant in a form reasonably required by the landlord, but does not require personal guarantees from administrative receivers. Whether it is reasonable for the landlord to insist on such guarantees is a factual question for trial, not suitable for summary determination. The claim for relief from forfeiture should not be struck out at this stage.

Citation
[2005] EWHC 1438 (Ch)
Parties
Claimant/respondent: Legends Surf Shops PLC (in administrative receivership); Defendant/appellant: Sun Life Assurance Society PLC
Jurisdiction
England and Wales
Judgment Date
14 July 2005
Procedural Posture
Appeal / Appeal Against Refusal to Strike Out Claim for Relief From Forfeiture
Outcome
Appeal dismissed
Legal Topics
Relief From Forfeiture, Authorised Guarantee Agreements, Landlord and Tenant Covenants, Administrative Receivership, Reasonableness of Landlord's Requirements
Property Law Insolvency Law Relief From Forfeiture Authorised Guarantee Agreements Landlord and Tenant Covenants Administrative Receivership Reasonableness of Landlord's Requirements

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Parties

Legends Surf Shops PLC (in administrative receivership)

Claimant/respondent

Sun Life Assurance Society PLC

Defendant/appellant

Procedural Posture

Appeal / Appeal Against Refusal to Strike Out Claim for Relief From Forfeiture

Legal Issues

  1. 1 Whether the landlord can reasonably insist on personal guarantees from administrative receivers as a condition for consenting to assignment and relief from forfeiture
  2. 2 Whether the form of the Authorised Guarantee Agreement offered by the Claimant meets the requirements of the lease and the Landlord and Tenant (Covenants) Act 1995

Ratio Decidendi

The lease requires an Authorised Guarantee Agreement from the outgoing tenant in a form reasonably required by the landlord, but does not require personal guarantees from administrative receivers. Whether it is reasonable for the landlord to insist on such guarantees is a factual question for trial, not suitable for summary determination. The claim for relief from forfeiture should not be struck out at this stage.

Court Disposition

Appeal dismissed

Orders

  • Claim for relief from forfeiture not struck out
  • Matter to proceed to trial on the reasonableness of the landlord's requirements