Kilmartin SCI (Hulton House) Ltd v Safeway Stores [2006] EWHC 60 (Ch) (27 January 2006)

Kilmartin SCI (Hulton House) Ltd v Safeway Stores [2006] EWHC 60 (Ch) (27 January 2006)

The correct approach is to measure the NIA of the premises as they exist at practical completion, including areas that are usable for any sensible purpose in connection with the intended use, but excluding areas occupied by lifts and permanent fire corridors where their installation was an obligation of the landlord under the agreement. On this basis, the NIA exceeded the Minimum Area, and the claimant is entitled to specific performance.

Citation
[2006] EWHC 60 (Ch)
Parties
Claimant: Kilmartin SCI (Hulton House) Ltd; Defendant: Safeway Stores
Jurisdiction
England and Wales
Judgment Date
27 January 2006
Procedural Posture
Claim for Specific Performance of an Agreement for Lease / High Court (chancery Division) Trial Judgment
Outcome
Claim allowed. Specific performance granted.
Legal Topics
Specific Performance, Commercial Leases, Measurement of Net Internal Area, Interpretation of Contracts
Property Law Contract Law Specific Performance Commercial Leases Measurement of Net Internal Area Interpretation of Contracts

Case Brief

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Parties

Kilmartin SCI (Hulton House) Ltd

Claimant

Safeway Stores

Defendant

Procedural Posture

Claim for Specific Performance of an Agreement for Lease / High Court (chancery Division) Trial Judgment

Legal Issues

  1. 1 Whether the Net Internal Area (NIA) of the premises as constructed met the Minimum Area required under the agreement for lease, entitling the claimant to specific performance or the defendant to terminate the agreement.
  2. 2 Proper construction of the agreement and the RICS Code of Measuring Practice as incorporated into the contract.

Ratio Decidendi

The correct approach is to measure the NIA of the premises as they exist at practical completion, including areas that are usable for any sensible purpose in connection with the intended use, but excluding areas occupied by lifts and permanent fire corridors where their installation was an obligation of the landlord under the agreement. On this basis, the NIA exceeded the Minimum Area, and the claimant is entitled to specific performance.

Court Disposition

Claim allowed. Specific performance granted.

Orders

  • Defendant to complete the lease as agreed.
  • Claimant entitled to specific performance of the agreement for lease.