Equinox Industrial (Gp2) Ltd. & Anor v Sketchley Ltd [2003] EWHC 2 (Ch) (10 January 2003)

Equinox Industrial (Gp2) Ltd. & Anor v Sketchley Ltd [2003] EWHC 2 (Ch) (10 January 2003)

The break clause in the lease was personal to the original tenant and, by express wording, excluded successors and assigns. Upon assignment, the right to determine the lease was extinguished and could not be revived by subsequent reassignment to the original tenant. The notice served by Sketchley Ltd was therefore...

Source-derived case information.

Citation
[2003] EWHC 2 (Ch)
Parties
Claimant: Equinox Industrial (GP2) Limited; Claimant: Equinox Industrial (Nominee) Limited; Defendant: Sketchley Limited
Jurisdiction
England and Wales
Judgment Date
10 January 2003
Procedural Posture
Chancery Division Lease Construction Dispute / Summary Judgment Application and Application for Permission to Counterclaim
Outcome
Declaration granted in favour of the Claimants; notice to determine the lease held invalid.
Legal Topics
Break Clauses in Leases, Personal Rights Under Leases, Assignment of Leases, Construction of Contractual Terms
Property Law Landlord and Tenant Break Clauses in Leases Personal Rights Under Leases Assignment of Leases Construction of Contractual Terms

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Parties

Equinox Industrial (GP2) Limited

Claimant

Equinox Industrial (Nominee) Limited

Claimant

Sketchley Limited

Defendant

Procedural Posture

Chancery Division Lease Construction Dispute / Summary Judgment Application and Application for Permission to Counterclaim

Legal Issues

  1. 1 Whether the right to determine the lease under clause 8 was personal to the original tenant and extinguished upon assignment, or could be revived upon reassignment to the original tenant.

Ratio Decidendi

The break clause in the lease was personal to the original tenant and, by express wording, excluded successors and assigns. Upon assignment, the right to determine the lease was extinguished and could not be revived by subsequent reassignment to the original tenant. The notice served by Sketchley Ltd was therefore invalid.

Court Disposition

Declaration granted in favour of the Claimants; notice to determine the lease held invalid.

Orders

  • Declaration that the notice served by Sketchley Ltd to determine the lease is invalid.