Waterfront (LC) Limited v Cine UK Limited [2022] JRC 212 (11 October 2022)

Waterfront (LC) Limited v Cine UK Limited [2022] JRC 212 (11 October 2022)

The lease expressly required the tenant to pay rent without deduction, allocating the risk of closure due to legislation to the tenant. Force majeure or frustration does not suspend the obligation to pay money under Jersey law or the lease. No implied term or equitable principle suspends or reduces rent during the pandemic. The landlord was not obliged to insure against pandemic-related losses. Government guidance does not alter the parties' contractual obligations. Summary judgment is therefore granted for the landlord for the arrears claimed.

Citation
[2022] JRC 212
Parties
Plaintiff: WF Ltd; Defendant: Cineworld
Jurisdiction
Jersey
Judgment Date
11 October 2022
Procedural Posture
Summary Judgment Application (landlord/tenant Dispute) / First Instance Judgment
Outcome
Summary judgment granted for landlord
Legal Topics
Rent Arrears During COVID 19 Pandemic, Force Majeure and Frustration, Implied Terms in Leases, Government COVID 19 Restrictions, Insurance Obligations Under Lease
Landlord and Tenant Contract Law Commercial Law Rent Arrears During COVID 19 Pandemic Force Majeure and Frustration Implied Terms in Leases Government COVID 19 Restrictions Insurance Obligations Under Lease

Case Brief

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Parties

WF Ltd

Plaintiff

Cineworld

Defendant

Procedural Posture

Summary Judgment Application (landlord/tenant Dispute) / First Instance Judgment

Legal Issues

  1. 1 Whether the tenant is liable to pay rent and service charges during periods when the cinema was closed or restricted due to COVID-19 regulations
  2. 2 Whether the lease is subject to suspension or reduction of rent due to force majeure or frustration
  3. 3 Whether implied terms or equitable principles suspend or reduce rent obligations during the pandemic

Ratio Decidendi

The lease expressly required the tenant to pay rent without deduction, allocating the risk of closure due to legislation to the tenant. Force majeure or frustration does not suspend the obligation to pay money under Jersey law or the lease. No implied term or equitable principle suspends or reduces rent during the pandemic. The landlord was not obliged to insure against pandemic-related losses. Government guidance does not alter the parties' contractual obligations. Summary judgment is therefore granted for the landlord for the arrears claimed.

Court Disposition

Summary judgment granted for landlord

Orders

  • Tenant to pay arrears of rent, service charge, and insurance as claimed
  • Tenant's defences based on force majeure, frustration, implied terms, and government guidance rejected