Consortium Commercial Developments Ltd v ABB Ltd [2015] EWHC 2128 (TCC) (30 July 2015)

Consortium Commercial Developments Ltd v ABB Ltd [2015] EWHC 2128 (TCC) (30 July 2015)

Damages for repair are capped at the diminution in value of the reversion (£225,000), not the full cost of repairs. Reinstatement and statutory items are recoverable at cost as landlord intends to carry out works. No consequential loss for rent/rates is recoverable as causation not established. Credit for overpaid rent must include VAT. Interest awarded at 3% per annum (2.5% above base).

Citation
[2015] EWHC 2128 (TCC)
Parties
Claimant: Consortium Commercial Developments Limited; Defendant: ABB Limited
Jurisdiction
England and Wales
Judgment Date
30 July 2015
Procedural Posture
Civil (dilapidations Claim) / High Court Trial Judgment
Outcome
Claim allowed in part; damages awarded subject to statutory cap and deductions.
Legal Topics
Dilapidations, Measure of Damages, Diminution in Value, Reinstatement, Statutory Compliance, Interest on Damages, Overpayment and VAT
Landlord and Tenant Property Law Contract Law Dilapidations Measure of Damages Diminution in Value Reinstatement Statutory Compliance +2 more

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Parties

Consortium Commercial Developments Limited

Claimant

ABB Limited

Defendant

Procedural Posture

Civil (dilapidations Claim) / High Court Trial Judgment

Legal Issues

  1. 1 Whether damages for repair are capped by s18(1) of the Landlord and Tenant Act 1927 (diminution in value)
  2. 2 Appropriate measure of damages for reinstatement and statutory items—cost or diminution in value
  3. 3 Entitlement to consequential losses (lost rent and rates)

Ratio Decidendi

Damages for repair are capped at the diminution in value of the reversion (£225,000), not the full cost of repairs. Reinstatement and statutory items are recoverable at cost as landlord intends to carry out works. No consequential loss for rent/rates is recoverable as causation not established. Credit for overpaid rent must include VAT. Interest awarded at 3% per annum (2.5% above base).

Court Disposition

Claim allowed in part; damages awarded subject to statutory cap and deductions.

Orders

  • Damages for diminution in value: £225,000
  • Damages for reinstatement items: £13,310