Airport Industrial Gp Ltd v Heathrow Airport Ltd & Anor

Airport Industrial Gp Ltd v Heathrow Airport Ltd & Anor

AP16 is obliged under paragraph 15.1 of schedule 2 to the 2005 Lease to provide 280 car parking spaces on the Site excluding the Stub, with the obligation arising at the latest on 22 October 2016. Damages are not an adequate remedy for HAL, so specific performance is appropriate, but AP16 is permitted a period of delay to October 2018 to pursue alternative development schemes, subject to milestones and payment of damages to HAL for interim provision of spaces. Gate Gourmet's waiver ended in late 2010, making HAL liable to the Claimants for breach of the 2000 Lease from that point. The Claimants are entitled to declarations but not an order for specific performance against HAL at this stage.

Parties
Claimant: Airport Industrial GP Limited; Claimant: Airport Industrial Nominees Limited; Defendant: Heathrow Airport Limited; Defendant: AP16 Limited
Jurisdiction
England and Wales
Judgment Date
21 December 2015
Procedural Posture
Civil / Judgment
Outcome
Specific performance granted in favour of HAL against AP16; declarations granted in favour of the Claimants against HAL; Claimants' request for specific performance against HAL denied.
Legal Topics
Specific Performance, Leasehold Obligations, Waiver, Implied Terms, Damages, Assignment of Lease, Planning Permission
Contract Law Land Law Equity Specific Performance Leasehold Obligations Waiver Implied Terms Damages +2 more

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Parties

Airport Industrial GP Limited

Claimant

Airport Industrial Nominees Limited

Claimant

Heathrow Airport Limited

Defendant

AP16 Limited

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 When does the obligation to provide 280 car parking spaces arise under the relevant leases?
  2. 2 Is AP16 obliged to provide 280 spaces or a lesser number?
  3. 3 Does the Car Park Licence terminate on 22 October 2016 or later?

Ratio Decidendi

AP16 is obliged under paragraph 15.1 of schedule 2 to the 2005 Lease to provide 280 car parking spaces on the Site excluding the Stub, with the obligation arising at the latest on 22 October 2016. Damages are not an adequate remedy for HAL, so specific performance is appropriate, but AP16 is permitted a period of delay to October 2018 to pursue alternative development schemes, subject to milestones and payment of damages to HAL for interim provision of spaces. Gate Gourmet's waiver ended in late 2010, making HAL liable to the Claimants for breach of the 2000 Lease from that point. The Claimants are entitled to declarations but not an order for specific performance against HAL at this stage.

Court Disposition

Specific performance granted in favour of HAL against AP16; declarations granted in favour of the Claimants against HAL; Claimants' request for specific performance against HAL denied.

Orders

  • AP16 to provide 280 car parking spaces on the Site excluding the Stub by October 2018, subject to milestones and default provisions.
  • AP16 to pay damages to HAL quarterly in advance for interim provision of spaces, with one year's damages to be paid into escrow within 28 days.