Friends Life Management Services Ltd v A & A Express Building Ltd

Friends Life Management Services Ltd v A & A Express Building Ltd

The express terms of the Lease require the Financial Year for the last accounting period to be the year to 31 December 2010, credit for prior provisions must be given at the first stage when matching expenditure is incurred, apportionment for time is to be done on a daily basis, and certificates/determinations not compliant with lease instructions are not binding.

Parties
Claimant: Friends Life Management Services Limited; Defendant: A & A Express Building Limited
Jurisdiction
England and Wales
Judgment Date
09 May 2014
Procedural Posture
Civil / Judgment
Outcome
Judgment for computation as per court's interpretation; parties to agree or court to direct account.
Legal Topics
Service Charge, Lease Interpretation, Apportionment, Break Clause, Accounting Periods
Landlord and Tenant Commercial Property Service Charge Lease Interpretation Apportionment Break Clause Accounting Periods

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Parties

Friends Life Management Services Limited

Claimant

A & A Express Building Limited

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 What is the relevant Financial Year for the last accounting period under the Lease?
  2. 2 How should the Gross Annual Expenditure be computed, especially regarding major works and provisions?
  3. 3 Can provision for anticipated expenditure in future years be included after lease termination?

Ratio Decidendi

The express terms of the Lease require the Financial Year for the last accounting period to be the year to 31 December 2010, credit for prior provisions must be given at the first stage when matching expenditure is incurred, apportionment for time is to be done on a daily basis, and certificates/determinations not compliant with lease instructions are not binding.

Court Disposition

Judgment for computation as per court's interpretation; parties to agree or court to direct account.

Orders

  • Certified account for year to 31 December 2010 to be prepared.
  • Costs actually incurred in 2010 to be included; 2011 costs excluded.