Norwich Union Life & Pensions v Linpac Mouldings Ltd

Norwich Union Life & Pensions v Linpac Mouldings Ltd

Norwich Union reasonably withheld consent to the assignment of the leases to Linpac, as the break clauses were personal and could not be exercised by Linpac after assignment or upon re-acquisition; Linpac's right to break the leases was irretrievably lost upon assignment.

Parties
Claimant/respondent: Norwich Union Life and Pensions Limited; Defendant/appellant: Linpac Mouldings Ltd
Jurisdiction
England and Wales
Judgment Date
21 May 2009
Procedural Posture
Civil / Judgment
Outcome
Claim allowed; Norwich Union's refusal of consent was reasonable; Linpac cannot exercise the break clauses.
Legal Topics
Assignment of Leases, Break Clauses, Reasonableness of Landlord's Consent, Interpretation of Lease Provisions
Property Law Landlord and Tenant Assignment of Leases Break Clauses Reasonableness of Landlord's Consent Interpretation of Lease Provisions

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Parties

Norwich Union Life and Pensions Limited

Claimant/respondent

Linpac Mouldings Ltd

Defendant/appellant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether Norwich Union unreasonably withheld consent to the assignment of the 1972 leases
  2. 2 Whether Linpac is entitled to exercise the break clauses to determine the leases after assignment or re-acquisition

Ratio Decidendi

Norwich Union reasonably withheld consent to the assignment of the leases to Linpac, as the break clauses were personal and could not be exercised by Linpac after assignment or upon re-acquisition; Linpac's right to break the leases was irretrievably lost upon assignment.

Court Disposition

Claim allowed; Norwich Union's refusal of consent was reasonable; Linpac cannot exercise the break clauses.

Orders

  • Norwich Union's refusal of consent to assignment upheld
  • Linpac not entitled to exercise break clauses after assignment or re-acquisition