Boots UK Ltd v Trafford Centre Ltd [2008] EWHC 3372 (Ch) (08 December 2008)

Boots UK Ltd v Trafford Centre Ltd [2008] EWHC 3372 (Ch) (08 December 2008)

The disputed items (entertainments, Christmas decorations, Santa's Grotto, and the Sky Wall) are facilities, amenities, or attractions of the Centre, not forms of promotion as defined in the lease. Therefore, their costs are not subject to the 50/50 sharing and 10% cap in paragraph 10 of Schedule 4, except that...

Source-derived case information.

Citation
[2008] EWHC 3372 (Ch)
Parties
Claimant: Boots UK Limited; Defendant: Trafford Centre Limited
Jurisdiction
England and Wales
Judgment Date
08 December 2008
Procedural Posture
Commercial Lease Dispute / Trial of Preliminary Issue
Outcome
Preliminary issue determined in favour of the defendant, subject to the qualification regarding the Sky Wall.
Legal Topics
Service Charge Provisions, Lease Interpretation, Promotion Costs, Retail Premises
Landlord and Tenant Commercial Property Service Charge Provisions Lease Interpretation Promotion Costs Retail Premises

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Parties

Boots UK Limited

Claimant

Trafford Centre Limited

Defendant

Procedural Posture

Commercial Lease Dispute / Trial of Preliminary Issue

  1. 1 Whether the costs of entertainments, Christmas decorations, Santa's Grotto, and the Sky Wall constitute 'Promotion' under the lease and are subject to the 50/50 sharing and 10% cap in paragraph 10 of Schedule 4.

Ratio Decidendi

The disputed items (entertainments, Christmas decorations, Santa's Grotto, and the Sky Wall) are facilities, amenities, or attractions of the Centre, not forms of promotion as defined in the lease. Therefore, their costs are not subject to the 50/50 sharing and 10% cap in paragraph 10 of Schedule 4, except that costs of using the Sky Wall specifically for advertising or promoting the Centre may fall within 'Promotion' and be subject to those provisions.

Court Disposition

Preliminary issue determined in favour of the defendant, subject to the qualification regarding the Sky Wall.

Orders

  • The costs of entertainments, Christmas decorations, and Santa's Grotto are not 'Promotion' under the lease and are not subject to paragraph 10 of Schedule 4.
  • Costs of the Sky Wall are not 'Promotion' except to the extent it is used for advertising or promoting the Centre, in which case such costs may be subject to paragraph 10.