Marklands Ltd v Virgin Retail Ltd [2003] EWHC 3428 (Ch) (28 November 2003)

Marklands Ltd v Virgin Retail Ltd [2003] EWHC 3428 (Ch) (28 November 2003)

The arbitrator did not commit a serious irregularity or error of law in his approach to valuation methods or in his treatment of comparables; the landlord's argument regarding alternative transactions was not properly before the arbitrator and is legally unsound. The challenge to the award fails and leave to appeal is refused.

Citation
[2003] EWHC 3428 (Ch)
Parties
Landlord: Marklands Ltd; Tenant: Virgin Retail Ltd
Jurisdiction
England and Wales
Judgment Date
28 November 2003
Procedural Posture
Arbitration Appeal (rent Review) / High Court (chancery Division) Judgment on Challenge to Arbitration Award
Outcome
Application dismissed; leave to appeal refused.
Legal Topics
Rent Review, Arbitration Award Challenge, Valuation Methods, Open Market Rental Value, Interpretation of Lease Terms
Property Law Landlord and Tenant Arbitration Rent Review Arbitration Award Challenge Valuation Methods Open Market Rental Value Interpretation of Lease Terms

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Parties

Marklands Ltd

Landlord

Virgin Retail Ltd

Tenant

Procedural Posture

Arbitration Appeal (rent Review) / High Court (chancery Division) Judgment on Challenge to Arbitration Award

Legal Issues

  1. 1 Whether the arbitrator committed a serious irregularity or error of law in his approach to valuation methods under the lease's rent review provisions
  2. 2 Whether the arbitrator failed to consider a material argument advanced by the landlord regarding hypothetical negotiations and alternative transactions

Ratio Decidendi

The arbitrator did not commit a serious irregularity or error of law in his approach to valuation methods or in his treatment of comparables; the landlord's argument regarding alternative transactions was not properly before the arbitrator and is legally unsound. The challenge to the award fails and leave to appeal is refused.

Court Disposition

Application dismissed; leave to appeal refused.

Orders

  • No order remitting the award under section 68 of the Arbitration Act 1996.
  • Refusal of leave to appeal under section 69 of the Arbitration Act 1996.