Equinox Industrial (Gp2) Ltd & Anor v Sketchley Ltd

Equinox Industrial (Gp2) Ltd & Anor v Sketchley Ltd

The right to determine the lease under clause 8 was personal to the original tenant as original lessee and ceased irrevocably upon assignment. It could not be revived by subsequent re-assignment to the original tenant. The notice served by Sketchley Ltd was invalid as Sketchley Ltd, having previously assigned the lease, was excluded from the benefit of the break clause under clause 8.3.

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
Civil / Summary Judgment Application and Counterclaim for Declaratory Relief
Outcome
Declaration granted in favour of Claimants; notice to determine lease declared invalid.
Legal Topics
Break Clauses in Leases, Personal Rights Under Leases, Assignment and Re Assignment of Leases, Construction of Contractual Terms
Landlord and Tenant Contract Law Break Clauses in Leases Personal Rights Under Leases Assignment and Re 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

Civil / Summary Judgment Application and Counterclaim for Declaratory Relief

Legal Issues

  1. 1 Whether the right to determine the lease under clause 8 was personal to the original tenant and ceased upon assignment, or could be revived upon re-assignment to the original tenant
  2. 2 Whether the notice served by Sketchley Ltd to determine the lease was valid

Ratio Decidendi

The right to determine the lease under clause 8 was personal to the original tenant as original lessee and ceased irrevocably upon assignment. It could not be revived by subsequent re-assignment to the original tenant. The notice served by Sketchley Ltd was invalid as Sketchley Ltd, having previously assigned the lease, was excluded from the benefit of the break clause under clause 8.3.

Court Disposition

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

Orders

  • Declarations as sought by the Claimants.