Scottish & Newcastle Plc v Raguz [2006] EWHC 821 (Ch) (11 April 2006)

Scottish & Newcastle Plc v Raguz [2006] EWHC 821 (Ch) (11 April 2006)

The defendant is not liable under the indemnity for sums claimed by the claimant in respect of rent arrears for which the claimant was not itself liable due to non-compliance with section 17 of the 1995 Act. The claimant's conduct in supporting the administrative receivers and entering the Maintenance Agreement did...

Source-derived case information.

Citation
[2006] EWHC 821 (Ch)
Parties
Claimant: Scottish & Newcastle plc; Defendant: Zeljko Stephen Raguz
Jurisdiction
England and Wales
Judgment Date
11 April 2006
Procedural Posture
Chancery Division Contract/indemnity Claim / Post Trial Judgment
Outcome
Claim allowed in part; defendant liable for sums not precluded by section 17, but not for sums where section 17 notice requirements were not met.
Legal Topics
Lease Assignment Indemnities, Section 24 Land Registration Act 1925, Section 17 Landlord and Tenant (covenants) Act 1995, Rent Review and Arrears, Mitigation of Loss, Remoteness of Damage
Landlord and Tenant Law Contract Law Lease Assignment Indemnities Section 24 Land Registration Act 1925 Section 17 Landlord and Tenant (covenants) Act 1995 Rent Review and Arrears Mitigation of Loss Remoteness of Damage

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Summary, issues, holding and outcome

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Parties

Scottish & Newcastle plc

Claimant

Zeljko Stephen Raguz

Defendant

Procedural Posture

Chancery Division Contract/indemnity Claim / Post Trial Judgment

Legal Issues

  1. 1 Whether the defendant is liable under the section 24 indemnity for rent and sums paid by the claimant to the landlord following assignment of leases
  2. 2 Whether section 17 of the Landlord and Tenant (Covenants) Act 1995 precludes recovery of certain rent arrears
  3. 3 Whether the claimant's conduct in supporting the administrative receivers and entering the Maintenance Agreement takes the payments outside the scope of the indemnity

Ratio Decidendi

The defendant is not liable under the indemnity for sums claimed by the claimant in respect of rent arrears for which the claimant was not itself liable due to non-compliance with section 17 of the 1995 Act. The claimant's conduct in supporting the administrative receivers and entering the Maintenance Agreement did not take the payments outside the scope of the indemnity, as the claimant acted in its own commercial interest and not recklessly or in bad faith. The indemnity covers sums for which the claimant was liable and paid to the landlord, except those precluded by section 17.

Court Disposition

Claim allowed in part; defendant liable for sums not precluded by section 17, but not for sums where section 17 notice requirements were not met.

Orders

  • Defendant to indemnify claimant for sums paid to landlord for which claimant was liable and section 17 notice requirements were satisfied.
  • Claim for sums precluded by section 17 dismissed.