Beegas Nominees Ltd v Decco Ltd

Beegas Nominees Ltd v Decco Ltd

Clause 3.2(6) of the lease expressly requires the arbitrator to assume that evidence of rental value of premises in Tamworth and Minworth is evidence of Market Rental Value of the subject premises as if those premises were situated upon the Stone Business Park, thereby precluding adjustment for location differences. The lease mandates a departure from normal valuation practice, and the arbitrator must not discount higher rental values from Tamworth or Minworth comparables on the basis of location.

Parties
Claimant: Beegas Nominees Limited; Defendant: Decco Limited
Jurisdiction
England and Wales
Judgment Date
31 July 2003
Procedural Posture
Originating Summons (arbitration Act 1996, S.45 Application) / Judgment on Application for Determination of Question of Law
Outcome
Declaration granted in terms of alternative (a) (landlord's construction upheld)
Legal Topics
Rent Review, Lease Construction, Arbitration Act 1996 S.45, Market Rental Value
Land Law Landlord and Tenant Arbitration Rent Review Lease Construction Arbitration Act 1996 S.45 Market Rental Value

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Parties

Beegas Nominees Limited

Claimant

Decco Limited

Defendant

Procedural Posture

Originating Summons (arbitration Act 1996, S.45 Application) / Judgment on Application for Determination of Question of Law

Legal Issues

  1. 1 Proper construction of clause 3.2(6) of the lease regarding treatment of rental evidence from Tamworth and Minworth for Market Rental Value determination
  2. 2 Whether the arbitrator must disregard location differences when considering comparable rental evidence

Ratio Decidendi

Clause 3.2(6) of the lease expressly requires the arbitrator to assume that evidence of rental value of premises in Tamworth and Minworth is evidence of Market Rental Value of the subject premises as if those premises were situated upon the Stone Business Park, thereby precluding adjustment for location differences. The lease mandates a departure from normal valuation practice, and the arbitrator must not discount higher rental values from Tamworth or Minworth comparables on the basis of location.

Court Disposition

Declaration granted in terms of alternative (a) (landlord's construction upheld)

Orders

  • Declaration that clause 3.2(6) requires the arbitrator to treat evidence of rental value of premises in Tamworth and Minworth as if those premises were situated upon the Stone Business Park, without adjustment for location differences.