Dreams Ltd v Pavilion Property Trustees Ltd & Anor

Dreams Ltd v Pavilion Property Trustees Ltd & Anor

The phrase 'any money due on completion' in clause 6.2 of the Agreement for Surrender refers to crystallised debts or payment obligations, not unresolved claims for unliquidated damages for breach of repairing covenants. The obligation to give vacant possession is, by general law and the structure of the contract, a condition precedent to the landlord's obligation to accept a surrender.

Parties
Claimant: Dreams Limited; Defendant: Pavilion Property Trustees Limited; Defendant: Pavilion Trustees Limited
Jurisdiction
England and Wales
Judgment Date
12 May 2020
Procedural Posture
Civil Property/contract / Trial of Preliminary Issues
Outcome
First preliminary issue determined in favour of the Claimant; second preliminary issue determined in favour of the Defendants.
Legal Topics
Lease Surrender, Dilapidations, Vacant Possession, Contract Interpretation
Property Law Contract Law Lease Surrender Dilapidations Vacant Possession Contract Interpretation

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Parties

Dreams Limited

Claimant

Pavilion Property Trustees Limited

Defendant

Pavilion Trustees Limited

Defendant

Procedural Posture

Civil Property/contract / Trial of Preliminary Issues

Legal Issues

  1. 1 Whether, on the true construction of the Agreement for Surrender, it was a condition of completion of the surrender that the tenant should pay to the landlord a sum in damages (if any) in respect of dilapidations (if any) that were the responsibility of the tenant under the Lease
  2. 2 Whether, on the true construction of the Agreement for Surrender, the tenant was obliged to give vacant possession before the landlord could be obliged to accept a surrender

Ratio Decidendi

The phrase 'any money due on completion' in clause 6.2 of the Agreement for Surrender refers to crystallised debts or payment obligations, not unresolved claims for unliquidated damages for breach of repairing covenants. The obligation to give vacant possession is, by general law and the structure of the contract, a condition precedent to the landlord's obligation to accept a surrender.

Court Disposition

First preliminary issue determined in favour of the Claimant; second preliminary issue determined in favour of the Defendants.