Good Harvest Partnership Llp v Centaur Services Ltd

Good Harvest Partnership Llp v Centaur Services Ltd

Section 25 of the Landlord and Tenant (Covenants) Act 1995 invalidates any agreement requiring a guarantor of a tenant to give a further guarantee for an assignee, as this would frustrate the Act's operation. The Guarantee Agreement is therefore void and unenforceable against Centaur.

Parties
Claimant: Good Harvest Partnership LLP; Defendant: Centaur Services Limited
Jurisdiction
England and Wales
Judgment Date
23 February 2010
Procedural Posture
Civil / Summary Judgment Application
Outcome
Claim dismissed
Legal Topics
Guarantees, Assignment of Lease, Landlord and Tenant (covenants) Act 1995, Authorised Guarantee Agreements, Anti Avoidance Provisions
Landlord and Tenant Law Contract Law Guarantees Assignment of Lease Landlord and Tenant (covenants) Act 1995 Authorised Guarantee Agreements Anti Avoidance Provisions

Case Brief

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Parties

Good Harvest Partnership LLP

Claimant

Centaur Services Limited

Defendant

Procedural Posture

Civil / Summary Judgment Application

Legal Issues

  1. 1 Whether the Landlord and Tenant (Covenants) Act 1995 precludes a guarantor of a tenant from being required to give a further guarantee in respect of an assignee of the lease
  2. 2 Whether the Guarantee Agreement is void and unenforceable against Centaur by reason of section 25 of the Covenants Act
  3. 3 Whether there is a triable issue as to whether the Underlease was surrendered or further assigned

Ratio Decidendi

Section 25 of the Landlord and Tenant (Covenants) Act 1995 invalidates any agreement requiring a guarantor of a tenant to give a further guarantee for an assignee, as this would frustrate the Act's operation. The Guarantee Agreement is therefore void and unenforceable against Centaur.

Court Disposition

Claim dismissed