Coors Holdings Ltd. v Dow Properties Ltd.

Coors Holdings Ltd. v Dow Properties Ltd.

The phrase 'the site comprised in the demised premises' in the rent review clause is a specific, non-standard term that must be given weight. It indicates that the rental value is to be assessed by reference to the land, disregarding the effect of the building erected by the tenant. Despite internal inconsistencies in the lease, the specific words in the rent review clause prevail over standard provisions. The open market rental value is to be determined as the value of the demised premises but disregarding the effect on rent of there being a building on it.

Parties
Claimant/respondent: Coors Holdings Ltd; Defendant/appellant: Dow Properties Ltd
Jurisdiction
England and Wales
Judgment Date
02 March 2007
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Rent Review, Lease Interpretation, Construction of Contracts
Land Law Landlord and Tenant Rent Review Lease Interpretation Construction of Contracts

Case Brief

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Parties

Coors Holdings Ltd

Claimant/respondent

Dow Properties Ltd

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

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 only or to the land and the building erected by the tenant
  2. 2 Proper construction of the phrase 'the site comprised in the demised premises' in the context of the lease

Ratio Decidendi

The phrase 'the site comprised in the demised premises' in the rent review clause is a specific, non-standard term that must be given weight. It indicates that the rental value is to be assessed by reference to the land, disregarding the effect of the building erected by the tenant. Despite internal inconsistencies in the lease, the specific words in the rent review clause prevail over standard provisions. The open market rental value is to be determined as the value of the demised premises but disregarding the effect on rent of there being a building on it.

Court Disposition

Appeal dismissed

Orders

  • Judge's declaration varied to state that the open market rental value is the rental value of the demised premises but disregarding the effect on rent of there being a building on it.