Kilmartin SCI (Hulton House) Ltd v Safeway Stores

Kilmartin SCI (Hulton House) Ltd v Safeway Stores

The NIA of the premises, as constructed and measured at the date of practical completion, exceeded the minimum area required under the agreement. The disputed areas of the sloping area, basement ramp, and front plinths (excluding the small upper component) are included in NIA, while the areas occupied by the lifts and the adjoining area are excluded. The correct approach to the Code is that an area is usable if it can be used for any sensible purpose in connection with the purposes for which the premises are to be used, and the measurement is to be of the premises as constructed, including works required by the agreement. Accordingly, Kilmartin is entitled to specific performance.

Parties
Claimant: Kilmartin SCI (Hulton House) Ltd; Defendant: Safeway Stores
Jurisdiction
England and Wales
Judgment Date
27 January 2006
Procedural Posture
Civil / Judgment After Trial
Outcome
Claim allowed; specific performance granted.
Legal Topics
Specific Performance, Lease Agreements, Measurement of Net Internal Area, Interpretation of Contracts
Contract Law Property Law Specific Performance Lease Agreements 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

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether the Net Internal Area (NIA) of the premises as constructed met the minimum required under the agreement for lease, entitling the claimant to specific performance or the defendant to terminate the agreement.
  2. 2 Whether certain disputed areas (lifts, adjoining area, sloping area, basement ramp, front plinths) should be included or excluded from NIA under the RICS Code of Measuring Practice.

Ratio Decidendi

The NIA of the premises, as constructed and measured at the date of practical completion, exceeded the minimum area required under the agreement. The disputed areas of the sloping area, basement ramp, and front plinths (excluding the small upper component) are included in NIA, while the areas occupied by the lifts and the adjoining area are excluded. The correct approach to the Code is that an area is usable if it can be used for any sensible purpose in connection with the purposes for which the premises are to be used, and the measurement is to be of the premises as constructed, including works required by the agreement. Accordingly, Kilmartin is entitled to specific performance.

Court Disposition

Claim allowed; specific performance granted.

Orders

  • Kilmartin's claim for specific performance of the agreement for lease is allowed.