Harbour Estates Ltd. v HSBC Bank Plc

Harbour Estates Ltd. v HSBC Bank Plc

The benefit of the break clause, though framed as a hybrid and partly personal right, was sufficiently connected to the lease to 'touch and concern' the land and thus passed to the Defendant on assignment under Section 63 of the Law of Property Act 1925, even though not expressly mentioned. The Defendant was entitled to exercise the break clause and terminate the lease.

Parties
Claimant: Harbour Estates Limited; Defendant: HSBC Bank PLC; Other: Stafford Properties Ltd
Jurisdiction
England and Wales
Judgment Date
15 July 2004
Procedural Posture
Civil / Judgment After Trial of Consolidated Claims and Counterclaims
Outcome
Claim dismissed; counterclaim allowed; declaration granted; no order for rectification.
Legal Topics
Assignment of Lease, Break Clause, Section 63 Law of Property Act 1925, Touch and Concern the Land, Rectification of Instruments
Property Law Landlord and Tenant Assignment of Lease Break Clause Section 63 Law of Property Act 1925 Touch and Concern the Land Rectification of Instruments

Case Brief

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Parties

Harbour Estates Limited

Claimant

HSBC Bank PLC

Defendant

Stafford Properties Ltd

Other

Procedural Posture

Civil / Judgment After Trial of Consolidated Claims and Counterclaims

Legal Issues

  1. 1 Whether the benefit of a break clause in a lease passed to an assignee without express mention in the assignment
  2. 2 Whether Section 63 of the Law of Property Act 1925 operates to pass the benefit of the break clause
  3. 3 Whether the break clause 'touches and concerns' the land

Ratio Decidendi

The benefit of the break clause, though framed as a hybrid and partly personal right, was sufficiently connected to the lease to 'touch and concern' the land and thus passed to the Defendant on assignment under Section 63 of the Law of Property Act 1925, even though not expressly mentioned. The Defendant was entitled to exercise the break clause and terminate the lease.

Court Disposition

Claim dismissed; counterclaim allowed; declaration granted; no order for rectification.

Orders

  • Claimant's claim is dismissed.
  • Declaration granted in favour of Defendant that the break clause was validly exercised.