Herbert Smith Freehills LLP v Fitzwilliam Trustees No 1 Ltd, Fitzwilliam Trustees No 2 Ltd [2024] NICA 84 (12 December 2024)

Herbert Smith Freehills LLP v Fitzwilliam Trustees No 1 Ltd, Fitzwilliam Trustees No 2 Ltd [2024] NICA 84 (12 December 2024)

Neither the leases nor the works agreements contained clear and unambiguous language imposing an obligation on the tenant to carry out the works; the tenant's works were permissive and not carried out pursuant to an obligation to the landlord, and must be disregarded for rental valuation purposes under Article 18 of the 1996 Order.

Citation
[2024] NICA 84
Parties
Applicant/respondent: Herbert Smith Freehills LLP; Respondent/appellant: Fitzwilliam Trustees No 1 Ltd, Fitzwilliam Trustees No 2 Ltd as Trustees of the Tullyhappy Property Unit Trust
Jurisdiction
Northern Ireland
Judgment Date
12 December 2024
Procedural Posture
Appeal From Lands Tribunal (case Stated) / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Business Tenancies, Lease Construction, Rent Review, Tenant's Improvements, Statutory Disregards, Obligations Under Lease
Landlord and Tenant Commercial Property Law Business Tenancies Lease Construction Rent Review Tenant's Improvements Statutory Disregards Obligations Under Lease

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Parties

Herbert Smith Freehills LLP

Applicant/respondent

Fitzwilliam Trustees No 1 Ltd, Fitzwilliam Trustees No 2 Ltd as Trustees of the Tullyhappy Property Unit Trust

Respondent/appellant

Procedural Posture

Appeal From Lands Tribunal (case Stated) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether tenant's works were carried out pursuant to an obligation to the landlord under Article 18 of the Business Tenancies (Northern Ireland) Order 1996
  2. 2 Whether such works should be disregarded for rental valuation purposes

Ratio Decidendi

Neither the leases nor the works agreements contained clear and unambiguous language imposing an obligation on the tenant to carry out the works; the tenant's works were permissive and not carried out pursuant to an obligation to the landlord, and must be disregarded for rental valuation purposes under Article 18 of the 1996 Order.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.
  • Parties are encouraged to agree costs; failing agreement, written submissions to be provided within two weeks.