Friends First Managed Pension Funds Ltd. v Smithwick & Ors [2019] IECA 83 (20 March 2019)

Friends First Managed Pension Funds Ltd. v Smithwick & Ors [2019] IECA 83 (20 March 2019)

The acts of Mr. Smithwick and the landlord, including the sub-letting, overholding by third parties, and payment of rent to the landlord's agent, did not amount to a surrender of the lease by operation of law. There was no unequivocal conduct by both parties inconsistent only with the continuation of the tenancy, nor any acceptance of surrender by the landlord. The statutory requirements for surrender or assignment were not met. Mr. Smithwick remained liable under the lease.

Citation
[2019] IECA 83
Parties
Plaintiff/appellant: Friends First Managed Pension Funds Limited; Defendant/respondent: Paul Smithwick; Third Party: A. T. Uniform Limited; Third Party: Thomas Kennedy
Jurisdiction
Ireland
Judgment Date
20 March 2019
Procedural Posture
Civil Appeal / Appeal From High Court to Court of Appeal
Outcome
Appeal allowed; High Court decision reversed.
Legal Topics
Surrender of Lease, Assignment of Lease, Sub Letting, Estoppel, Privity of Estate, Operation of Law, Deasy's Act 1860
Landlord and Tenant Law Contract Law Property Law Surrender of Lease Assignment of Lease Sub Letting Estoppel Privity of Estate +2 more

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Parties

Friends First Managed Pension Funds Limited

Plaintiff/appellant

Paul Smithwick

Defendant/respondent

A. T. Uniform Limited

Third Party

Thomas Kennedy

Third Party

Procedural Posture

Civil Appeal / Appeal From High Court to Court of Appeal

Legal Issues

  1. 1 Whether Mr. Smithwick surrendered his lease by operation of law under s.7 of Deasy's Act 1860
  2. 2 Whether the acts of the parties amounted to a surrender of the lease
  3. 3 Whether the landlord accepted any surrender

Ratio Decidendi

The acts of Mr. Smithwick and the landlord, including the sub-letting, overholding by third parties, and payment of rent to the landlord's agent, did not amount to a surrender of the lease by operation of law. There was no unequivocal conduct by both parties inconsistent only with the continuation of the tenancy, nor any acceptance of surrender by the landlord. The statutory requirements for surrender or assignment were not met. Mr. Smithwick remained liable under the lease.

Court Disposition

Appeal allowed; High Court decision reversed.

Orders

  • Dismissal of Mr. Smithwick's defence of surrender by operation of law.
  • Mr. Smithwick remains liable for arrears under the lease.