ASDA Stores Ltd v Salya Investments Ltd

ASDA Stores Ltd v Salya Investments Ltd

Extensions to the original building carried out by the tenant are to be taken into account for both five yearly and intermediate rent reviews under the lease; the lease does not distinguish between free-standing buildings and extensions, and the disregard of improvements does not apply to such works.

Parties
Claimant: Asda Stores Ltd.; Defendant: Salya Investments Ltd.
Jurisdiction
England and Wales
Judgment Date
09 October 2007
Procedural Posture
Commercial Lease Dispute / Judgment
Outcome
Declaration granted in favour of the landlord; tenant's claim for disregard of improvements rejected; permission to appeal refused.
Legal Topics
Rent Review, Lease Interpretation, Tenant Improvements
Landlord and Tenant Commercial Property Rent Review Lease Interpretation Tenant Improvements

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 1 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Asda Stores Ltd.

Claimant

Salya Investments Ltd.

Defendant

Procedural Posture

Commercial Lease Dispute / Judgment

Legal Issues

  1. 1 Whether extensions and improvements by the tenant should be disregarded for rent review purposes under the lease
  2. 2 Interpretation of 'building' and 'improvements' in rent review provisions

Ratio Decidendi

Extensions to the original building carried out by the tenant are to be taken into account for both five yearly and intermediate rent reviews under the lease; the lease does not distinguish between free-standing buildings and extensions, and the disregard of improvements does not apply to such works.

Court Disposition

Declaration granted in favour of the landlord; tenant's claim for disregard of improvements rejected; permission to appeal refused.

Orders

  • Declaration to be agreed by counsel and approved by the court.
  • Defendant's costs summarily assessed and awarded against claimant.