Prudential Assurance Company Ltd v Ayres & Anor

Prudential Assurance Company Ltd v Ayres & Anor

The Supplemental Deed did not limit the Prudential's right of recovery against the respondents; it only limited recourse against the personal assets of Altheimer & Gray's partners. The respondents remain fully liable under the Licence for the outstanding rent and charges. The Contracts (Rights of Third Parties) Act 1999 does not assist the respondents, and the Licence is not void under sections 16 and 25 of the Landlord and Tenant (Covenants) Act 1995.

Parties
Appellant: The Prudential Assurance Company Ltd; Respondent: David Monroe Ayres; Respondent: Christopher Grew
Jurisdiction
England and Wales
Judgment Date
07 February 2008
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal allowed
Legal Topics
Guarantees Under Leases, Interpretation of Commercial Contracts, Third Party Rights, Limitation of Liability, Effect of Supplemental Deeds
Landlord and Tenant Law Contract Law Guarantees Under Leases Interpretation of Commercial Contracts Third Party Rights Limitation of Liability Effect of Supplemental Deeds

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Parties

The Prudential Assurance Company Ltd

Appellant

David Monroe Ayres

Respondent

Christopher Grew

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether the Supplemental Deed limited the liability of the respondents under their guarantee to the assets of the partnership of Altheimer & Gray
  2. 2 Whether the respondents could rely on the Contracts (Rights of Third Parties) Act 1999 to enforce the Supplemental Deed
  3. 3 Whether clauses 6.3 and 6.4 of the Licence were void under sections 16 and 25 of the Landlord and Tenant (Covenants) Act 1995

Ratio Decidendi

The Supplemental Deed did not limit the Prudential's right of recovery against the respondents; it only limited recourse against the personal assets of Altheimer & Gray's partners. The respondents remain fully liable under the Licence for the outstanding rent and charges. The Contracts (Rights of Third Parties) Act 1999 does not assist the respondents, and the Licence is not void under sections 16 and 25 of the Landlord and Tenant (Covenants) Act 1995.

Court Disposition

Appeal allowed

Orders

  • The appeal is allowed; the respondents are liable for the outstanding rent and charges under the Licence.