Prudential Assurance Company Ltd v Ayres & Anor [2008] EWCA Civ 52 (07 February 2008)

Prudential Assurance Company Ltd v Ayres & Anor [2008] EWCA Civ 52 (07 February 2008)

The Supplemental Deed does not limit the respondents' liability under their guarantee; it only restricts recourse against the personal assets of Altheimer & Gray's partners. The respondents remain liable for the outstanding rent and charges under the Licence. The Contracts (Rights of Third Parties) Act 1999 does not assist the respondents, and the Landlord and Tenant (Covenants) Act 1995 does not render the guarantee void.

Citation
[2008] EWCA Civ 52
Parties
Claimant/appellant: The Prudential Assurance Company Ltd; Defendant/respondent: David Monroe Ayres; Defendant/respondent: Christopher Grew
Jurisdiction
England and Wales
Judgment Date
07 February 2008
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
appeal allowed
Legal Topics
Lease Assignment, Guarantees, Landlord and Tenant, Contract Interpretation, Third Party Rights
Property Law Contract Law Lease Assignment Guarantees Landlord and Tenant Contract Interpretation Third Party Rights

Case Brief

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Parties

The Prudential Assurance Company Ltd

Claimant/appellant

David Monroe Ayres

Defendant/respondent

Christopher Grew

Defendant/respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the Supplemental Deed limits the appellant's right to recover rent from the respondents under their guarantee.
  2. 2 Whether the respondents can rely on the Contracts (Rights of Third Parties) Act 1999 to enforce the Supplemental Deed.
  3. 3 Whether clauses 6.3 and 6.4 of the Licence are void under sections 16 and 25 of the Landlord and Tenant (Covenants) Act 1995.

Ratio Decidendi

The Supplemental Deed does not limit the respondents' liability under their guarantee; it only restricts recourse against the personal assets of Altheimer & Gray's partners. The respondents remain liable for the outstanding rent and charges under the Licence. The Contracts (Rights of Third Parties) Act 1999 does not assist the respondents, and the Landlord and Tenant (Covenants) Act 1995 does not render the guarantee void.

Court Disposition

appeal allowed

Orders

  • Respondents are liable for the outstanding rent and charges under the Licence.
  • No relief from liability under the Supplemental Deed or the Landlord and Tenant (Covenants) Act 1995.