Crestfort Ltd. & Ors v Tesco Stores Ltd & Anor [2005] EWHC 805 (Ch) (25 May 2005)

Crestfort Ltd. & Ors v Tesco Stores Ltd & Anor [2005] EWHC 805 (Ch) (25 May 2005)

Tesco breached the lease by granting an underlease to Magspeed without the landlords' consent and without satisfying the condition precedent of including 'like covenants and conditions'—specifically, the repairing obligation was materially different. The landlords were under no obligation to consider or grant...

Source-derived case information.

Citation
[2005] EWHC 805 (Ch)
Parties
Claimant/part 20 Defendant: Crestfort Limited; Claimant/part 20 Defendant: Halepoint Limited; Claimant/part 20 Defendant: Yorkstream Properties Limited; Defendant/part 20 Claimant: Tesco Stores Limited; Defendant: Magspeed Limited
Jurisdiction
England and Wales
Judgment Date
25 May 2005
Procedural Posture
Chancery Division Property/contract Dispute / Judgment After Trial
Outcome
Claim allowed in part; counterclaim dismissed.
Legal Topics
Breach of Covenant, Underlease Without Consent, Reasonableness of Withholding Consent, Inducement of Breach of Contract, Remedies for Breach, Restrictive Covenants
Property Law Landlord and Tenant Law Contract Law Breach of Covenant Underlease Without Consent Reasonableness of Withholding Consent Inducement of Breach of Contract Remedies for Breach +1 more

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Summary, issues, holding and outcome

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Parties

Crestfort Limited

Claimant/part 20 Defendant

Halepoint Limited

Claimant/part 20 Defendant

Yorkstream Properties Limited

Claimant/part 20 Defendant

Tesco Stores Limited

Defendant/part 20 Claimant

Magspeed Limited

Defendant

Procedural Posture

Chancery Division Property/contract Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether Tesco breached the lease by granting an underlease to Magspeed without landlord's consent
  2. 2 Whether the underlease contained 'like covenants and conditions' as required by the headlease
  3. 3 Whether the landlords unreasonably withheld consent to the underlease

Ratio Decidendi

Tesco breached the lease by granting an underlease to Magspeed without the landlords' consent and without satisfying the condition precedent of including 'like covenants and conditions'—specifically, the repairing obligation was materially different. The landlords were under no obligation to consider or grant consent, and section 1 of the Landlord and Tenant Act 1988 did not apply. Magspeed knowingly induced Tesco's breach by accepting the underlease with knowledge that consent had not been obtained.

Court Disposition

Claim allowed in part; counterclaim dismissed.

Orders

  • Order for surrender of the underlease by Magspeed to Tesco.
  • Damages awarded to the landlords against Tesco and Magspeed.