Crestfort Ltd. & Ors v Tesco Stores Ltd & Anor

Crestfort Ltd. & Ors v Tesco Stores Ltd & Anor

Tesco breached the lease by granting an underlease without landlord's consent and without 'like' covenants, and Magspeed knowingly induced the breach; landlords entitled to mandatory order for surrender and inquiry as to damages.

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
Civil / Judgment
Outcome
Judgment for landlords; Tesco's counterclaim dismissed.
Legal Topics
Breach of Covenant, Underletting, Wrongful Interference With Contract, Landlord and Tenant, Damages, Mandatory Injunction

Case Brief

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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

Civil / Judgment

  1. 1 Whether Tesco breached the covenant by granting an underlease without landlord's consent
  2. 2 Whether Magspeed knowingly induced breach of contract
  3. 3 Whether the underlease contained 'like' covenants and conditions as the lease

Ratio Decidendi

Tesco breached the lease by granting an underlease without landlord's consent and without 'like' covenants, and Magspeed knowingly induced the breach; landlords entitled to mandatory order for surrender and inquiry as to damages.

Court Disposition

Judgment for landlords; Tesco's counterclaim dismissed.

Orders

  • Mandatory injunction for surrender of the underlease by Magspeed to Tesco
  • Inquiry as to damages against Tesco and Magspeed