Quirkco Investments Ltd v Aspray Transport Ltd

Quirkco Investments Ltd v Aspray Transport Ltd

The landlord could only demand payment of the Insurance Charge after actual payment to the insurer; as no payment had been made at the time of demand, the tenant was not in arrears and the notice under the break clause was not invalidated on this ground. The demand for insurance rent was invalid, and the counterclaim for repayment of rent attributable to the period after lease determination was struck out as rent payable in advance is not apportionable unless expressly provided.

Parties
Claimant: QuirkCo Investments Limited; Defendant: Aspray Transport Limited
Jurisdiction
England and Wales
Judgment Date
23 November 2011
Procedural Posture
Civil / Summary Judgment Application and Strike Out Counterclaim
Outcome
Claimant's application for summary judgment dismissed; counterclaim for repayment of rent attributable to period after lease determination struck out; remaining issues to be determined at trial.
Legal Topics
Break Clause, Insurance Rent, Lease Termination, Summary Judgment, Restitution, Unjust Enrichment
Landlord and Tenant Contract Law Break Clause Insurance Rent Lease Termination Summary Judgment Restitution Unjust Enrichment

Case Brief

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Parties

QuirkCo Investments Limited

Claimant

Aspray Transport Limited

Defendant

Procedural Posture

Civil / Summary Judgment Application and Strike Out Counterclaim

Legal Issues

  1. 1 Whether the landlord was entitled to demand payment of the Insurance Charge before actual payment to the insurer
  2. 2 Whether failure to use reasonable endeavours to endorse the lessee’s interest or obtain waiver of subrogation affects entitlement to insurance rent
  3. 3 Whether the demand for insurance rent was valid as to timing

Ratio Decidendi

The landlord could only demand payment of the Insurance Charge after actual payment to the insurer; as no payment had been made at the time of demand, the tenant was not in arrears and the notice under the break clause was not invalidated on this ground. The demand for insurance rent was invalid, and the counterclaim for repayment of rent attributable to the period after lease determination was struck out as rent payable in advance is not apportionable unless expressly provided.

Court Disposition

Claimant's application for summary judgment dismissed; counterclaim for repayment of rent attributable to period after lease determination struck out; remaining issues to be determined at trial.

Orders

  • Application for summary judgment on claim dismissed
  • Counterclaim for repayment of rent attributable to period after lease determination struck out