Edlington Properties Ltd v JH Fenner & Co Ltd [2005] EWHC 2158 (QB) (20 October 2005)

Edlington Properties Ltd v JH Fenner & Co Ltd [2005] EWHC 2158 (QB) (20 October 2005)

A tenant cannot set off a claim for damages against the original landlord for defective construction against rent due to an assignee of the reversion for periods after the assignment. The right of set-off does not extend to post-assignment rent under the Landlord and Tenant (Covenants) Act 1995 and established case law. The lease and agreement for lease do not exclude set-off by their terms, but this is academic given the primary finding. The insurance rent for the relevant period is the higher sum claimed by Edlington, as the alternative quotation was provided too late. No further implied term regarding insurance information is necessary beyond the express terms of the lease.

Citation
[2005] EWHC 2158 (QB)
Parties
Claimant: Edlington Properties Ltd; Defendant: J. H. Fenner and Co. Ltd.
Jurisdiction
England and Wales
Judgment Date
20 October 2005
Procedural Posture
Trial of Preliminary Issues in a Claim for Rent and Insurance Premiums Under a Lease / Judgment After Hearing of Preliminary Issues
Outcome
Judgment for the Claimant on the principal issue; set-off not available against post-assignment rent; insurance rent due in the higher amount claimed by Edlington; no implied term as pleaded by the Defendant.
Legal Topics
Equitable Set Off, Assignment of Reversion, Interpretation of Lease Terms, Implied Terms, Insurance Rent
Landlord and Tenant Property Law Contract Law Equitable Set Off Assignment of Reversion Interpretation of Lease Terms Implied Terms Insurance Rent

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Parties

Edlington Properties Ltd

Claimant

J. H. Fenner and Co. Ltd.

Defendant

Procedural Posture

Trial of Preliminary Issues in a Claim for Rent and Insurance Premiums Under a Lease / Judgment After Hearing of Preliminary Issues

Legal Issues

  1. 1 Whether the tenant (Fenner) can set off a damages claim against the original landlord (WDA) for defective construction against rent due to the assignee of the reversion (Edlington) for periods after assignment
  2. 2 Whether the right of set-off is excluded by the terms of the Agreement for Lease or Lease
  3. 3 Proper construction of the insurance rent clause and amount due

Ratio Decidendi

A tenant cannot set off a claim for damages against the original landlord for defective construction against rent due to an assignee of the reversion for periods after the assignment. The right of set-off does not extend to post-assignment rent under the Landlord and Tenant (Covenants) Act 1995 and established case law. The lease and agreement for lease do not exclude set-off by their terms, but this is academic given the primary finding. The insurance rent for the relevant period is the higher sum claimed by Edlington, as the alternative quotation was provided too late. No further implied term regarding insurance information is necessary beyond the express terms of the lease.

Court Disposition

Judgment for the Claimant on the principal issue; set-off not available against post-assignment rent; insurance rent due in the higher amount claimed by Edlington; no implied term as pleaded by the Defendant.

Orders

  • Defendant's claim to set-off against rent due to the Claimant is dismissed.
  • Defendant to pay insurance rent in the sum of £108,804.04 for the year beginning 24 June 2004.