Shirayama Shokusan Company Ltd & Ors v Danovo Ltd [2004] EWHC 2288 (Ch) (11 August 2004)

Shirayama Shokusan Company Ltd & Ors v Danovo Ltd [2004] EWHC 2288 (Ch) (11 August 2004)

Danovo has established a good arguable case that the consent for signage given by the letter of licence is subject to the reasonableness requirement in clause 9.2 of the deed, so that Shirayama cannot withdraw consent except on reasonable grounds. The validity of the notices given by Shirayama to terminate Danovo's signage rights is highly questionable, particularly as the proposed replacement signage did not accommodate Danovo's right to signage indicating the Saatchi Gallery. The balance of convenience favours granting interim relief to maintain the status quo pending trial, but Shirayama's interim offer to retain one Saatchi sign and replace the other with 'Main Entrance' signage is a...

Citation
[2004] EWHC 2288 (Ch)
Parties
Claimant: Shirayama Shokusan Company Ltd; Claimant: Takashi Shirayama; Claimant: Miyako Shirayama; Claimant: Ayako Shirayama; Claimant: Yuichi Shirayama; Claimant: Cadogan Leisure Investments Ltd; Defendant: Danovo Ltd
Jurisdiction
England and Wales
Judgment Date
11 August 2004
Procedural Posture
Interim Injunction Application in Ongoing Landlord and Tenant Litigation / Application for Interim Injunctive Relief Pending Trial
Outcome
Interim injunction granted in part; status quo to be maintained with modification.
Legal Topics
Interim Injunctions, Landlord's Consent, Signage Rights, Construction of Lease Terms, Reasonableness of Withholding Consent
Landlord and Tenant Property Law Contract Law Interim Injunctions Landlord's Consent Signage Rights Construction of Lease Terms Reasonableness of Withholding Consent

Case Brief

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Parties

Shirayama Shokusan Company Ltd

Claimant

Takashi Shirayama

Claimant

Miyako Shirayama

Claimant

Ayako Shirayama

Claimant

Yuichi Shirayama

Claimant

Cadogan Leisure Investments Ltd

Claimant

Danovo Ltd

Defendant

Procedural Posture

Interim Injunction Application in Ongoing Landlord and Tenant Litigation / Application for Interim Injunctive Relief Pending Trial

Legal Issues

  1. 1 Whether the landlord (Shirayama) can terminate consent for signage at the Belvedere Road entrance except on reasonable grounds under clause 9.2 of the deed and the letter of licence;
  2. 2 Whether the notices given by Shirayama to terminate Danovo's signage rights were valid;
  3. 3 Whether refusal of consent to Danovo's application to retain signage was reasonable;

Ratio Decidendi

Danovo has established a good arguable case that the consent for signage given by the letter of licence is subject to the reasonableness requirement in clause 9.2 of the deed, so that Shirayama cannot withdraw consent except on reasonable grounds. The validity of the notices given by Shirayama to terminate Danovo's signage rights is highly questionable, particularly as the proposed replacement signage did not accommodate Danovo's right to signage indicating the Saatchi Gallery. The balance of convenience favours granting interim relief to maintain the status quo pending trial, but Shirayama's interim offer to retain one Saatchi sign and replace the other with 'Main Entrance' signage is a...

Court Disposition

Interim injunction granted in part; status quo to be maintained with modification.

Orders

  • Shirayama is restrained from removing both existing Saatchi Gallery signs from the Belvedere Road entrance pending trial or further order, provided that Danovo removes one of the two signs and allows Shirayama to install a 'Main Entrance' sign in its place as an interim arrangement.