Colt Group Ltd v Unicourt Wandsworth LLB

Colt Group Ltd v Unicourt Wandsworth LLB

Where the lease requires the tenant to reinstate and insurance is effected in the names of landlord and tenant, the landlord is obliged to pay over to the tenant any insurance moneys received for the purpose of reinstatement, insofar as those moneys are reasonably required for that purpose. Declaratory relief is appropriate to clarify this obligation, given the legitimate concerns raised and the absence of an express landlord covenant.

Parties
Claimant: Colt Group Limited; Defendant: Unicourt Wandsworth LLP
Jurisdiction
England and Wales
Judgment Date
25 September 2020
Procedural Posture
Part 8 Claim (declaratory Relief) / Judgment After Trial on Written Evidence
Outcome
Declaration granted in part; permission to amend claim form granted only to extent necessary for declaration; permission to amend for second declaration refused.
Legal Topics
Insurance Under Leases, Declaratory Relief, Application of Insurance Proceeds, Obligations of Landlord and Tenant
Property Law Landlord and Tenant Law Insurance Under Leases Declaratory Relief Application of Insurance Proceeds Obligations of Landlord and Tenant

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Parties

Colt Group Limited

Claimant

Unicourt Wandsworth LLP

Defendant

Procedural Posture

Part 8 Claim (declaratory Relief) / Judgment After Trial on Written Evidence

Legal Issues

  1. 1 Whether the landlord is obliged to pay insurance moneys received to the tenant for reinstatement under the lease
  2. 2 Whether declaratory relief should be granted regarding the application of insurance moneys

Ratio Decidendi

Where the lease requires the tenant to reinstate and insurance is effected in the names of landlord and tenant, the landlord is obliged to pay over to the tenant any insurance moneys received for the purpose of reinstatement, insofar as those moneys are reasonably required for that purpose. Declaratory relief is appropriate to clarify this obligation, given the legitimate concerns raised and the absence of an express landlord covenant.

Court Disposition

Declaration granted in part; permission to amend claim form granted only to extent necessary for declaration; permission to amend for second declaration refused.

Orders

  • Declaration: In the event of an insured peril destroying or causing damage to the Property, following which the Tenant is required to rebuild or reinstate the Property pursuant to clauses 2(2) and 2(7) of the Lease, any moneys paid by the insurer to the Landlord under a policy incepted pursuant to clause 2(2) in...
  • Permission to amend claim form for second declaration (where reinstatement is impossible) refused.