First Tower Trustees Ltd & Anor v CDS (Superstores International) Ltd [2017] EWHC B6 (Ch) (20 February 2017)

First Tower Trustees Ltd & Anor v CDS (Superstores International) Ltd [2017] EWHC B6 (Ch) (20 February 2017)

The Claimants made actionable misrepresentations in the Replies to Enquiries (specifically answer 15.7) by failing to disclose known asbestos problems, inducing the Defendant to enter into the Lease and Agreement for a Lease. The contractual non-reliance clause in the Lease failed the reasonableness test under UCTA, so liability for misrepresentation was not excluded. Trustee limitation clauses did not extend to pre-contractual misrepresentation. The Defendant is entitled to damages for asbestos remedial costs and alternative accommodation, subject to recalculation of periods and VAT.

Citation
[2017] EWHC B6 (Ch)
Parties
Claimant: Claimants (Landlords); Defendant: Defendant (Tenant)
Jurisdiction
England and Wales
Judgment Date
20 February 2017
Procedural Posture
Civil / Trial Judgment
Outcome
Judgment for the Defendant on the misrepresentation claim; damages awarded subject to recalculation.
Legal Topics
Misrepresentation, Leasehold, Trustee Liability, Damages, Exclusion Clauses, Quiet Enjoyment, Non Derogation From Grant
Property Law Contract Law Trusts Law Misrepresentation Leasehold Trustee Liability Damages Exclusion Clauses +2 more

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Parties

Claimants (Landlords)

Claimant

Defendant (Tenant)

Defendant

Procedural Posture

Civil / Trial Judgment

Legal Issues

  1. 1 Whether the Claimants made actionable misrepresentations inducing the Defendant to enter into the Lease and Agreement for a Lease
  2. 2 Whether contractual exclusion/non-reliance clauses preclude liability for misrepresentation
  3. 3 Whether the Claimants breached covenants for quiet enjoyment and non-derogation from grant

Ratio Decidendi

The Claimants made actionable misrepresentations in the Replies to Enquiries (specifically answer 15.7) by failing to disclose known asbestos problems, inducing the Defendant to enter into the Lease and Agreement for a Lease. The contractual non-reliance clause in the Lease failed the reasonableness test under UCTA, so liability for misrepresentation was not excluded. Trustee limitation clauses did not extend to pre-contractual misrepresentation. The Defendant is entitled to damages for asbestos remedial costs and alternative accommodation, subject to recalculation of periods and VAT.

Court Disposition

Judgment for the Defendant on the misrepresentation claim; damages awarded subject to recalculation.

Orders

  • Claimants liable for damages for misrepresentation relating to Replies to Enquiries (answer 15.7)
  • Damages to be calculated for asbestos remedial costs and alternative accommodation, with deductions for VAT and periods of delay