Reox Holdings Plc -v- Cullen & Anor [2012] IEHC 299 (26 July 2012)

Reox Holdings Plc -v- Cullen & Anor [2012] IEHC 299 (26 July 2012)

Section 132 of the Land and Conveyancing Law Reform Act 2009 applies to any new lease entered into by a guarantor with the landlord upon the exercise of the landlord's option after the original lease was disclaimed, requiring rent reviews to be both upwards and downwards. The guarantee provision is not an 'agreement for a lease' under the Act, and the landlord's entitlement to indemnity under clause 6.1 is ousted upon exercise of the option under clause 6.7.

Citation
[2012] IEHC 299
Parties
Plaintiff: Reox Holdings PLC; Defendant: David Cullen; Defendant: Simon Davidson
Jurisdiction
Ireland
Judgment Date
26 July 2012
Procedural Posture
Commercial / High Court Judgment
Outcome
Declaration granted in favour of plaintiff
Legal Topics
Rent Review Clauses, Lease Guarantees, Retrospective Legislation, Statutory Construction
Property Law Contract Law Statutory Interpretation Rent Review Clauses Lease Guarantees Retrospective Legislation Statutory Construction

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 19 Party arguments 2
Sign in to unlock

Parties

Reox Holdings PLC

Plaintiff

David Cullen

Defendant

Simon Davidson

Defendant

Procedural Posture

Commercial / High Court Judgment

Legal Issues

  1. 1 Does section 132 of the Land and Conveyancing Law Reform Act 2009 apply to a new lease entered into by a guarantor upon the landlord's exercise of an option after the original lease was disclaimed?
  2. 2 Is the guarantee provision an 'agreement for a lease' under the 2009 Act?
  3. 3 Does the landlord retain entitlement to indemnity under clause 6.1 after exercising the option under clause 6.7?

Ratio Decidendi

Section 132 of the Land and Conveyancing Law Reform Act 2009 applies to any new lease entered into by a guarantor with the landlord upon the exercise of the landlord's option after the original lease was disclaimed, requiring rent reviews to be both upwards and downwards. The guarantee provision is not an 'agreement for a lease' under the Act, and the landlord's entitlement to indemnity under clause 6.1 is ousted upon exercise of the option under clause 6.7.

Court Disposition

Declaration granted in favour of plaintiff

Orders

  • Section 132 of the Land and Conveyancing Law Reform Act 2009 applies to any new lease entered into by the guarantor with the landlord upon exercise of the landlord's option.
  • Rent reviews in such new leases must allow for both upwards and downwards adjustments.