Caerns Motor Services Ltd v Texaco Ltd & Anor [1994] EWHC Ch 2 (22 March 1994)

Caerns Motor Services Ltd v Texaco Ltd & Anor [1994] EWHC Ch 2 (22 March 1994)

The solus (petrol tie) covenant in the lease is not a personal covenant but one that touches and concerns the land, affecting the mode of user and value of the premises. Therefore, under section 141 of the Law of Property Act 1925, the benefit and burden of the covenant run with the reversion and are enforceable by the assignee (SSS).

Citation
[1994] EWHC Ch 2
Parties
Plaintiff: Caerns Motor Services Ltd; First Defendant: Texaco Ltd; Second Defendant: Save Service Stations Ltd (SSS)
Jurisdiction
England and Wales
Judgment Date
22 March 1994
Procedural Posture
Civil / Judgment After Hearing of Questions of Law and Construction Under Order 14 a
Outcome
Plaintiffs' claims dismissed
Legal Topics
Assignment of Lease Covenants, Personal Covenants Vs Covenants Running With the Land, Solus (tie) Agreements, Section 141 Law of Property Act 1925, Touch and Concern the Land, Enforceability of Covenants by Assignees
Property Law Landlord and Tenant Law Contract Law Assignment of Lease Covenants Personal Covenants Vs Covenants Running With the Land Solus (tie) Agreements Section 141 Law of Property Act 1925 Touch and Concern the Land +1 more

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Parties

Caerns Motor Services Ltd

Plaintiff

Texaco Ltd

First Defendant

Save Service Stations Ltd (SSS)

Second Defendant

Procedural Posture

Civil / Judgment After Hearing of Questions of Law and Construction Under Order 14 a

Legal Issues

  1. 1 Whether the assignee of the reversion (SSS) can enforce the solus (petrol tie) covenant against the tenants
  2. 2 Whether the covenant is personal to Texaco or runs with the land under section 141 of the Law of Property Act 1925
  3. 3 Whether the covenant touches and concerns the land

Ratio Decidendi

The solus (petrol tie) covenant in the lease is not a personal covenant but one that touches and concerns the land, affecting the mode of user and value of the premises. Therefore, under section 141 of the Law of Property Act 1925, the benefit and burden of the covenant run with the reversion and are enforceable by the assignee (SSS).

Court Disposition

Plaintiffs' claims dismissed

Orders

  • Declaration that the solus (petrol tie) covenant is enforceable by the assignee of the reversion (SSS)
  • Plaintiffs' applications for declarations to the contrary are refused