Design Progression Ltd v Thurloe Properties Ltd [2004] EWHC 324 (Ch) (25 February 2004)

Design Progression Ltd v Thurloe Properties Ltd [2004] EWHC 324 (Ch) (25 February 2004)

The defendant landlord breached its statutory duty under the Landlord & Tenant Act 1988 by failing to give any decision or reasons within a reasonable time after the claimant's application for licence to assign. The landlord's repeated and irrelevant requests for further information, and its failure to make a decision, amounted to an unreasonable refusal. The evidence showed the landlord's true motivation was to frustrate the assignment and recover the premises for its own benefit, which is an extraneous and improper consideration. The claimant is entitled to damages for losses caused by the landlord's breach.

Citation
[2004] EWHC 324 (Ch)
Parties
Claimant: Design Progression Limited; Defendant: Thurloe Properties Limited
Jurisdiction
England and Wales
Judgment Date
25 February 2004
Procedural Posture
Civil (landlord and Tenant) / High Court Trial Judgment
Outcome
Judgment for the claimant
Legal Topics
Licence to Assign, Breach of Statutory Duty, Landlord & Tenant Act 1988, Reasonableness of Refusal, Damages for Unreasonable Refusal
Landlord and Tenant Property Law Contract Law Licence to Assign Breach of Statutory Duty Landlord & Tenant Act 1988 Reasonableness of Refusal Damages for Unreasonable Refusal

Case Brief

Summary, issues, holding and outcome

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Parties

Design Progression Limited

Claimant

Thurloe Properties Limited

Defendant

Procedural Posture

Civil (landlord and Tenant) / High Court Trial Judgment

Legal Issues

  1. 1 Whether the defendant landlord breached its statutory duty under the Landlord & Tenant Act 1988 by failing to give consent or refusal to assign within a reasonable time and/or by failing to provide reasons for refusal;
  2. 2 Whether the landlord's repeated requests for information and failure to make a decision amounted to an unreasonable refusal;
  3. 3 Whether the claimant is entitled to damages for losses caused by the landlord's breach.

Ratio Decidendi

The defendant landlord breached its statutory duty under the Landlord & Tenant Act 1988 by failing to give any decision or reasons within a reasonable time after the claimant's application for licence to assign. The landlord's repeated and irrelevant requests for further information, and its failure to make a decision, amounted to an unreasonable refusal. The evidence showed the landlord's true motivation was to frustrate the assignment and recover the premises for its own benefit, which is an extraneous and improper consideration. The claimant is entitled to damages for losses caused by the landlord's breach.

Court Disposition

Judgment for the claimant

Orders

  • Declaration that the defendant breached its statutory duty under the Landlord & Tenant Act 1988 by failing to give a decision within a reasonable time and by failing to provide reasons for refusal.
  • Assessment of damages to be determined for losses suffered by the claimant as a result of the breach.