Starmark Enterprises Ltd v CPL Distribution Ltd [2001] EWCA Civ 1252 (31 July 2001)

Starmark Enterprises Ltd v CPL Distribution Ltd [2001] EWCA Civ 1252 (31 July 2001)

Where a rent review clause contains an express deeming provision specifying the consequence of failing to serve a counter-notice within the stipulated time, that provision constitutes a clear contra-indication, making time of the essence. The presumption that time is not of the essence does not apply, and the parties are bound by the contract's express terms. The tenant cannot serve a counter-notice out of time and is deemed to have agreed to the landlord's proposed rent.

Citation
[2001] EWCA Civ 1252
Parties
Appellant: Starmark Enterprises Ltd; Respondent: CPL Distribution Ltd
Jurisdiction
England and Wales
Judgment Date
31 July 2001
Procedural Posture
Appeal / Court of Appeal (civil Division) Judgment
Outcome
Appeal allowed
Legal Topics
Rent Review Clauses, Time of the Essence, Lease Interpretation, Deeming Provisions
Property Law Contract Law Rent Review Clauses Time of the Essence Lease Interpretation Deeming Provisions

Case Brief

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Parties

Starmark Enterprises Ltd

Appellant

CPL Distribution Ltd

Respondent

Procedural Posture

Appeal / Court of Appeal (civil Division) Judgment

Legal Issues

  1. 1 Whether a tenant can validly serve a counter-notice under a rent review clause after the contractual time limit has elapsed when the lease contains a deeming provision
  2. 2 Whether the presence of a deeming provision in a rent review clause makes time of the essence

Ratio Decidendi

Where a rent review clause contains an express deeming provision specifying the consequence of failing to serve a counter-notice within the stipulated time, that provision constitutes a clear contra-indication, making time of the essence. The presumption that time is not of the essence does not apply, and the parties are bound by the contract's express terms. The tenant cannot serve a counter-notice out of time and is deemed to have agreed to the landlord's proposed rent.

Court Disposition

Appeal allowed

Orders

  • Declarations granted in terms sought by the Claimant (landlord)