Foot Locker Retail Ireland Ltd v Percy Nominees Ltd (Approved) [2024] IECA 65 (22 March 2024)

Foot Locker Retail Ireland Ltd v Percy Nominees Ltd (Approved) [2024] IECA 65 (22 March 2024)

Irish law does not recognise the concept of partial or temporary frustration of a lease. The obligation to pay rent is integral and not severable from the lease. The COVID-19 restrictions, while unprecedented, did not frustrate the lease or excuse the tenant from rent obligations for periods of closure. The High Court correctly applied established legal principles and there is no basis to depart from precedent or to make new law as sought by the appellant.

Citation
[2024] IECA 65
Parties
Plaintiff/appellant: Foot Locker Retail Ireland Limited; Defendant/respondent: Percy Nominees Limited
Jurisdiction
Ireland
Judgment Date
22 March 2024
Procedural Posture
Civil Appeal / Judgment on Appeal
Outcome
appeal dismissed
Legal Topics
Frustration of Contract, Commercial Leases, COVID 19 Regulations, Partial Frustration, Rent Suspension
Contract Law Landlord and Tenant Law Frustration of Contract Commercial Leases COVID 19 Regulations Partial Frustration Rent Suspension

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Parties

Foot Locker Retail Ireland Limited

Plaintiff/appellant

Percy Nominees Limited

Defendant/respondent

Procedural Posture

Civil Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether Irish law recognises the concept of partial or temporary frustration of a commercial lease
  2. 2 Whether the COVID-19 pandemic and resulting government-mandated closures frustrated or partially frustrated the lease, excusing the tenant from rent payment obligations

Ratio Decidendi

Irish law does not recognise the concept of partial or temporary frustration of a lease. The obligation to pay rent is integral and not severable from the lease. The COVID-19 restrictions, while unprecedented, did not frustrate the lease or excuse the tenant from rent obligations for periods of closure. The High Court correctly applied established legal principles and there is no basis to depart from precedent or to make new law as sought by the appellant.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed; High Court order affirmed.