Firle Investments Ltd v. Datapoint International Ltd [2000] EWHC Technology 105 (8th May, 2000)

Firle Investments Ltd v. Datapoint International Ltd [2000] EWHC Technology 105 (8th May, 2000)

The landlord, Firle, had a firm intention at the expiry of the lease to carry out substantial refurbishment works that would render most of the tenant's repairs valueless. Therefore, under the second limb of Section 18(1) of the Landlord and Tenant Act 1927, damages are limited to the value of repairs that would have survived the refurbishment. The correct measure of damages is the diminution in value of the reversion, calculated as £17,875, with no further sums for loss of rent or rates justified on the evidence.

Citation
[2000] EWHC Technology 105
Parties
Claimant: Firle Investments Limited; Defendant: Datapoint International Limited
Jurisdiction
England and Wales
Procedural Posture
Dilapidations Claim (landlord and Tenant) / Judgment After Trial
Outcome
Claim allowed in part
Legal Topics
Dilapidations, Repairing Covenants, Damages, Section 18(1) Landlord and Tenant Act 1927, Diminution in Value, Disclosure of Documents
Property Law Landlord and Tenant Dilapidations Repairing Covenants Damages Section 18(1) Landlord and Tenant Act 1927 Diminution in Value Disclosure of Documents

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Parties

Firle Investments Limited

Claimant

Datapoint International Limited

Defendant

Procedural Posture

Dilapidations Claim (landlord and Tenant) / Judgment After Trial

Legal Issues

  1. 1 What is the correct measure of damages for breach of repairing covenants under Section 18(1) of the Landlord and Tenant Act 1927?
  2. 2 Did the landlord intend to carry out works that would render the tenant's repairs valueless (second limb of Section 18(1))?
  3. 3 What is the diminution in value of the reversion caused by the tenant's breaches?

Ratio Decidendi

The landlord, Firle, had a firm intention at the expiry of the lease to carry out substantial refurbishment works that would render most of the tenant's repairs valueless. Therefore, under the second limb of Section 18(1) of the Landlord and Tenant Act 1927, damages are limited to the value of repairs that would have survived the refurbishment. The correct measure of damages is the diminution in value of the reversion, calculated as £17,875, with no further sums for loss of rent or rates justified on the evidence.

Court Disposition

Claim allowed in part

Orders

  • Judgment for the claimant for £17,875 as damages for breach of repairing covenants, subject to any further adjustment for loss of rent or rates if justified.
  • No order for the full cost of repairs or for damages exceeding the diminution in value.