Coors Holdings Ltd. v Dow Properties Ltd. [2007] EWCA Civ 255 (02 March 2007)

Coors Holdings Ltd. v Dow Properties Ltd. [2007] EWCA Civ 255 (02 March 2007)

The phrase 'the site comprised in the demised premises' in the rent review clause is a clear, non-standard indication that the rental value is to be assessed by reference to the land alone, disregarding the effect of the building erected by the tenant, despite internal inconsistencies in the lease. The open market rental value for rent review purposes is the value of the land, not including the building.

Citation
[2007] EWCA Civ 255
Parties
Claimant/respondent: Coors Holdings Ltd; Defendant/appellant: Dow Properties Ltd
Jurisdiction
England and Wales
Judgment Date
02 March 2007
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Rent Review, Lease Interpretation, Ground Rent, Construction of Contracts
Property Law Landlord and Tenant Rent Review Lease Interpretation Ground Rent Construction of Contracts

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Parties

Coors Holdings Ltd

Claimant/respondent

Dow Properties Ltd

Defendant/appellant

Procedural Posture

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

Legal Issues

  1. 1 Whether the rent review clause in the lease requires the open market rental value to be assessed by reference to the land alone or land plus buildings
  2. 2 Interpretation of the phrase 'the site comprised in the demised premises' in the rent review clause

Ratio Decidendi

The phrase 'the site comprised in the demised premises' in the rent review clause is a clear, non-standard indication that the rental value is to be assessed by reference to the land alone, disregarding the effect of the building erected by the tenant, despite internal inconsistencies in the lease. The open market rental value for rent review purposes is the value of the land, not including the building.

Court Disposition

Appeal dismissed

Orders

  • Declaration to be varied: the open market rental value to be determined on the rent review is the rental value of the demised premises but disregarding the effect on the rent of there being a building on it.