First Penthouse Ltd. v Channel Hotels and Properties (UK) Ltd.

First Penthouse Ltd. v Channel Hotels and Properties (UK) Ltd.

CHAPS unreasonably withheld consent to assignment of the Lease to Mr Tamimi, as the grounds relied upon were collateral and not related to the landlord-tenant relationship under the Lease. CHAPS also waived its right to forfeit the Lease for breach of covenant to complete the Project expeditiously by its actions, including acceptance of rent and exercise of the Option.

Parties
Claimant: First Penthouse Limited; Defendant/claimant: Channel Hotels and Properties (UK) Limited; Defendant: Fahad Al Tamimi; Defendant: Varlet International Limited; Defendant: Ruth Gary Orbach; Defendant: Quallvile Limited; Defendant: Norval Holdings Limited
Jurisdiction
England and Wales
Judgment Date
14 November 2003
Procedural Posture
Civil / Judgment
Outcome
Declaration granted in favour of FP; second action by CHAPS dismissed.
Legal Topics
Forfeiture of Lease, Assignment of Lease, Waiver of Forfeiture, Reasonableness of Consent, Collateral Agreements, Personal Covenants, Landlord and Tenant (covenants) Act 1995
Property Law Landlord and Tenant Law Contract Law Forfeiture of Lease Assignment of Lease Waiver of Forfeiture Reasonableness of Consent Collateral Agreements +2 more

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Parties

First Penthouse Limited

Claimant

Channel Hotels and Properties (UK) Limited

Defendant/claimant

Fahad Al Tamimi

Defendant

Varlet International Limited

Defendant

Ruth Gary Orbach

Defendant

Quallvile Limited

Defendant

Norval Holdings Limited

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether consent to assign the Lease was unreasonably withheld by CHAPS
  2. 2 Whether CHAPS was entitled to forfeit the Lease for breach of covenant to complete the Project expeditiously
  3. 3 Whether any right to forfeit was waived by CHAPS

Ratio Decidendi

CHAPS unreasonably withheld consent to assignment of the Lease to Mr Tamimi, as the grounds relied upon were collateral and not related to the landlord-tenant relationship under the Lease. CHAPS also waived its right to forfeit the Lease for breach of covenant to complete the Project expeditiously by its actions, including acceptance of rent and exercise of the Option.

Court Disposition

Declaration granted in favour of FP; second action by CHAPS dismissed.

Orders

  • Declaration that consent to assign the Lease was unreasonably withheld by CHAPS.
  • Second action by CHAPS for forfeiture dismissed.