Landlord Protect Ltd. v St Anselm Development Company Ltd.

Landlord Protect Ltd. v St Anselm Development Company Ltd.

The requirement that a reasonable alternative security be provided by the assignee before releasing Mr Reid from liability on a subsequent assignment was reasonable and proper. The phrase 'reasonable alternative security' is capable of being satisfied by the covenant of the proposed assignee itself if sufficiently strong, and does not confer additional rights on the head landlords beyond those already in the lease. The claimant's refusal to comply was a breach of contract, and the claim for return of the deposit fails.

Parties
Claimant: Landlord Protect Limited; Defendant: St Anselm Development Company Limited
Jurisdiction
England and Wales
Judgment Date
08 July 2008
Procedural Posture
Civil / Trial Judgment
Outcome
Claim dismissed
Legal Topics
Assignment of Lease, Guarantees, Reasonableness of Landlord's Conditions, Return of Deposit
Landlord and Tenant Contract Assignment of Lease Guarantees Reasonableness of Landlord's Conditions Return of Deposit

Case Brief

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Parties

Landlord Protect Limited

Claimant

St Anselm Development Company Limited

Defendant

Procedural Posture

Civil / Trial Judgment

Legal Issues

  1. 1 Whether the head landlords acted reasonably in requiring, as a condition of consent to assignment, that the claimant's director's guarantee be released only if reasonable alternative security is provided by a future assignee
  2. 2 Whether the claimant was entitled to rescind the sale contract and recover the deposit

Ratio Decidendi

The requirement that a reasonable alternative security be provided by the assignee before releasing Mr Reid from liability on a subsequent assignment was reasonable and proper. The phrase 'reasonable alternative security' is capable of being satisfied by the covenant of the proposed assignee itself if sufficiently strong, and does not confer additional rights on the head landlords beyond those already in the lease. The claimant's refusal to comply was a breach of contract, and the claim for return of the deposit fails.

Court Disposition

Claim dismissed