The Prudential Assurance Company Ltd v Ayres & Ors

The Prudential Assurance Company Ltd v Ayres & Ors

Clause 2.1 of the Supplemental Deed limits recovery by the landlord against previous tenants (guarantors) to the assets of the A & G partnership, and the Defendants are entitled to rely on this limitation under the Contracts (Rights of Third Parties) Act 1999.

Parties
Claimant: The Prudential Assurance Company Limited; Defendant: David Monroe Ayres; Defendant: Christopher Grew
Jurisdiction
England and Wales
Judgment Date
03 April 2007
Procedural Posture
Civil / Judgment
Outcome
Claim against the Defendants for recovery beyond A & G partnership assets fails; Defendants protected by clause 2.1 of the Supplemental Deed.
Legal Topics
Guarantees, Lease Assignment, Third Party Rights, Limitation of Liability
Contract Law Landlord and Tenant Law Guarantees Lease Assignment Third Party Rights Limitation of Liability

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 8 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

The Prudential Assurance Company Limited

Claimant

David Monroe Ayres

Defendant

Christopher Grew

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether clause 2.1 of the Supplemental Deed limits recovery against previous tenants to partnership assets
  2. 2 Whether previous tenants (guarantors) can rely on clause 2.1 under the Contracts (Rights of Third Parties) Act 1999
  3. 3 Whether the guarantee given by previous tenants is rendered ineffective by the Landlord and Tenant (Covenants) Act 1995

Ratio Decidendi

Clause 2.1 of the Supplemental Deed limits recovery by the landlord against previous tenants (guarantors) to the assets of the A & G partnership, and the Defendants are entitled to rely on this limitation under the Contracts (Rights of Third Parties) Act 1999.

Court Disposition

Claim against the Defendants for recovery beyond A & G partnership assets fails; Defendants protected by clause 2.1 of the Supplemental Deed.