Pavilion Property Trustees Ltd & Anor v Permira Advisers LLP & Anor

Pavilion Property Trustees Ltd & Anor v Permira Advisers LLP & Anor

The guarantee is valid and effective only in relation to the obligations of the Assignee; references to 'the Assignee' in clauses 3 to 13 are literal and do not include the Next Assignee; clause 14 is of no effect. Severance by removing the word 'Next' is not permissible under the blue pencil test.

Parties
Claimant: Pavilion Property Trustees Limited; Claimant: Pavilion Trustees Limited; Defendant: Permira Advisers LLP; Defendant: Permira Advisers (London) Limited
Jurisdiction
England and Wales
Judgment Date
30 January 2014
Procedural Posture
Civil / Judgment on Interim Application for Declaratory Relief
Outcome
Application for declarations as drafted by Claimants dismissed; declarations granted as per court's reasoning
Legal Topics
Guarantees, Lease Assignment, Declaratory Relief, Landlord and Tenant (covenants) Act 1995, Severance of Contract Terms
Property Law Contract Law Guarantees Lease Assignment Declaratory Relief Landlord and Tenant (covenants) Act 1995 Severance of Contract Terms

Case Brief

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Parties

Pavilion Property Trustees Limited

Claimant

Pavilion Trustees Limited

Claimant

Permira Advisers LLP

Defendant

Permira Advisers (London) Limited

Defendant

Procedural Posture

Civil / Judgment on Interim Application for Declaratory Relief

Legal Issues

  1. 1 Whether the guarantee extends to obligations of the Next Assignee
  2. 2 Whether declaratory relief should be granted by consent
  3. 3 Whether severance of void provisions is possible under the 1995 Act

Ratio Decidendi

The guarantee is valid and effective only in relation to the obligations of the Assignee; references to 'the Assignee' in clauses 3 to 13 are literal and do not include the Next Assignee; clause 14 is of no effect. Severance by removing the word 'Next' is not permissible under the blue pencil test.

Court Disposition

Application for declarations as drafted by Claimants dismissed; declarations granted as per court's reasoning

Orders

  • Declaration that the guarantee is valid and effective only in relation to the obligations of the Assignee
  • References to 'the Assignee' in clauses 3 to 13 are to be taken literally and do not refer to the Next Assignee