Commerz Real Investmentgesellschaft mbh v TFS Stores Ltd

Commerz Real Investmentgesellschaft mbh v TFS Stores Ltd

The claimant is entitled to summary judgment for unpaid rent and service charges because the lease does not require insurance against pandemic-related loss of rent, the rent cesser provisions only apply to physical damage, and the defendant has no real prospect of defending the claim. There are no compelling reasons for a trial, and the claim was not issued prematurely nor did it circumvent government restrictions.

Parties
Claimant: Commerz Real Investmentgesellschaft mbh; Defendant: TFS Stores Limited
Jurisdiction
England and Wales
Judgment Date
16 April 2021
Procedural Posture
Commercial Rent Recovery / Summary Judgment Application
Outcome
summary judgment granted for claimant
Legal Topics
Lease Construction, Insurance Obligations, Rent Suspension, COVID 19 Pandemic Impact
Contract Law Landlord and Tenant Law Lease Construction Insurance Obligations Rent Suspension COVID 19 Pandemic Impact

Case Brief

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Parties

Commerz Real Investmentgesellschaft mbh

Claimant

TFS Stores Limited

Defendant

Procedural Posture

Commercial Rent Recovery / Summary Judgment Application

Legal Issues

  1. 1 Whether the claimant is entitled to summary judgment for unpaid rent and service charges under the lease during COVID-19 closures
  2. 2 Whether the claimant was obliged to insure against loss of rent due to notifiable disease or government action
  3. 3 Whether the rent cesser provisions in the lease apply to COVID-19 closures

Ratio Decidendi

The claimant is entitled to summary judgment for unpaid rent and service charges because the lease does not require insurance against pandemic-related loss of rent, the rent cesser provisions only apply to physical damage, and the defendant has no real prospect of defending the claim. There are no compelling reasons for a trial, and the claim was not issued prematurely nor did it circumvent government restrictions.

Court Disposition

summary judgment granted for claimant

Orders

  • Judgment entered for claimant for £166,884.82 plus contractual interest
  • Defendant's application for adjournment dismissed