Monsolar IQ Ltd v Woden Park Ltd

Monsolar IQ Ltd v Woden Park Ltd

The indexation formula in paragraph 3 of the Sixth Schedule to the Lease is a drafting mistake. The correct interpretation is that the rent passing immediately before each successive Review Date is to be indexed by reference to the increase or decrease in the RPI over the previous year only, not over the entire expired part of the term. The Lease is to be read accordingly.

Parties
Claimant: Monsolar IQ Limited; Defendant: Woden Park Limited
Jurisdiction
England and Wales
Judgment Date
05 June 2020
Procedural Posture
Civil (commercial Lease Interpretation) / Judgment After Written Submissions
Outcome
Declaration granted in favour of the Claimant (Tenant)
Legal Topics
Lease Interpretation, Rent Review Clauses, Corrective Construction, Indexation Clauses, Rectification
Contract Law Land Law Landlord and Tenant Lease Interpretation Rent Review Clauses Corrective Construction Indexation Clauses Rectification

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Parties

Monsolar IQ Limited

Claimant

Woden Park Limited

Defendant

Procedural Posture

Civil (commercial Lease Interpretation) / Judgment After Written Submissions

Legal Issues

  1. 1 Whether the indexation clause in the rent review provisions of the Lease contains a clear drafting mistake
  2. 2 If so, what is the correct interpretation of the clause

Ratio Decidendi

The indexation formula in paragraph 3 of the Sixth Schedule to the Lease is a drafting mistake. The correct interpretation is that the rent passing immediately before each successive Review Date is to be indexed by reference to the increase or decrease in the RPI over the previous year only, not over the entire expired part of the term. The Lease is to be read accordingly.

Court Disposition

Declaration granted in favour of the Claimant (Tenant)

Orders

  • Declaration that on its true construction the Sixth Schedule to the Lease means that the rent passing at the end of each complete year of the term is to be increased or decreased on the Review Date in accordance with any proportionate change in the RPI during that year, as measured by the values of the RPI two...