Wigan Borough Council v Scullindale Global Ltd & Ors

Wigan Borough Council v Scullindale Global Ltd & Ors

The lease permitted the Council to exercise the break clause at any time while an event of default persisted, but not after the default was remedied. The development was not completed in accordance with the planning permissions by the milestone date or by the date of the break notice. The Council did not cause or contribute to the delay, nor did it waive or was estopped from exercising the break clause. The break notice was valid and effective to terminate the lease. The proper valuation date for compensation is the date of termination. The Council's service of the break notice was not a repudiatory breach. No mesne profits are payable as the Council suffered no loss and Scullindale...

Parties
Claimant: Wigan Borough Council; Defendant: Scullindale Global Limited; Defendant: Craig Baker; Defendant: Amir Madani
Jurisdiction
England and Wales
Judgment Date
01 April 2021
Procedural Posture
Civil (property/landlord and Tenant) / Trial Judgment
Outcome
Claim for possession allowed; break notice valid; lease terminated; claim for mesne profits, trespass, double value, and interest dismissed; counterclaim dismissed; payment due to Scullindale to be determined per judgment; claim against guarantors dismissed.
Legal Topics
Break Clauses, Implication of Terms, Waiver, Estoppel, Valuation, Mesne Profits, Repudiation of Lease
Landlord and Tenant Property Law Contract Law Break Clauses Implication of Terms Waiver Estoppel Valuation +2 more

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Parties

Wigan Borough Council

Claimant

Scullindale Global Limited

Defendant

Craig Baker

Defendant

Amir Madani

Defendant

Procedural Posture

Civil (property/landlord and Tenant) / Trial Judgment

Legal Issues

  1. 1 Whether the landlord's break clause was validly exercised under the lease
  2. 2 Whether the development was completed in accordance with planning permissions by the relevant milestone date
  3. 3 Whether the Council was prevented from exercising the break clause by its own conduct (prevention principle)

Ratio Decidendi

The lease permitted the Council to exercise the break clause at any time while an event of default persisted, but not after the default was remedied. The development was not completed in accordance with the planning permissions by the milestone date or by the date of the break notice. The Council did not cause or contribute to the delay, nor did it waive or was estopped from exercising the break clause. The break notice was valid and effective to terminate the lease. The proper valuation date for compensation is the date of termination. The Council's service of the break notice was not a repudiatory breach. No mesne profits are payable as the Council suffered no loss and Scullindale...

Court Disposition

Claim for possession allowed; break notice valid; lease terminated; claim for mesne profits, trespass, double value, and interest dismissed; counterclaim dismissed; payment due to Scullindale to be determined per judgment; claim against guarantors dismissed.

Orders

  • Declaration that the lease ended on 22 November 2019 pursuant to the break notice
  • Order for possession of Haigh Hall against Scullindale on a date to be fixed