Sunberry Properties Ltd v Innovate Logistics Ltd & Ors

Sunberry Properties Ltd v Innovate Logistics Ltd & Ors

Leave is granted because the administrators acted in breach of the alienation covenant and failed to notify the landlord or the court of the licence arrangement, which fundamentally altered the landlord's proprietary interests. The purpose of administration was achieved on the day of the order, and the balancing exercise of interests does not arise. The administrators' conduct was materially improper.

Parties
Applicant: Sunberry Properties Limited; First Respondent: Innovate Logistics Limited (In Administration); Second Respondents: Yearsley Is Limited, Yearsley Newark Limited, Yearsley Bristol Limited, Yearsley Holmewood Limited, Yearsley Scunthorpe Limited
Jurisdiction
England and Wales
Judgment Date
15 July 2008
Procedural Posture
Insolvency/property / Application for Leave to Commence Proceedings Under Insolvency Act
Outcome
Application granted
Legal Topics
Administration Order, Alienation Covenant, Licence to Occupy, Landlord Rights, Breach of Lease
Insolvency Property Administration Order Alienation Covenant Licence to Occupy Landlord Rights Breach of Lease

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 3 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Sunberry Properties Limited

Applicant

Innovate Logistics Limited (In Administration)

First Respondent

Yearsley Is Limited, Yearsley Newark Limited, Yearsley Bristol Limited, Yearsley Holmewood Limited, Yearsley Scunthorpe Limited

Second Respondents

Procedural Posture

Insolvency/property / Application for Leave to Commence Proceedings Under Insolvency Act

Legal Issues

  1. 1 Whether leave should be granted to commence proceedings for termination of an occupational licence granted in breach of an alienation covenant during administration
  2. 2 Whether the administrators' conduct in granting the licence without landlord's knowledge was permissible

Ratio Decidendi

Leave is granted because the administrators acted in breach of the alienation covenant and failed to notify the landlord or the court of the licence arrangement, which fundamentally altered the landlord's proprietary interests. The purpose of administration was achieved on the day of the order, and the balancing exercise of interests does not arise. The administrators' conduct was materially improper.

Court Disposition

Application granted

Orders

  • Leave granted to commence proceedings for termination of the occupational licence granted to the second respondents in breach of the alienation covenant.