Arlington Business Parks GP Ltd v Scottish and Newcastle Ltd [2014] ScotCS CSOH_77 (29 April 2014)

Arlington Business Parks GP Ltd v Scottish and Newcastle Ltd [2014] ScotCS CSOH_77 (29 April 2014)

The tenants were in breach of their repairing obligations at the date of service of the break notices, and under the proper construction of clause SECOND, any breach at either the date of notice or the termination date invalidates the break notice. Therefore, the leases remain in force and the tenants are liable for rent from the purported termination date.

Citation
[2014] ScotCS CSOH_77
Parties
Pursuer: Arlington Business Parks GP Limited; Defender: Scottish & Newcastle Limited
Jurisdiction
Scotland
Judgment Date
29 April 2014
Procedural Posture
Commercial Lease Dispute / Opinion of the Court (outer House, Court of Session)
Outcome
Declarator granted in favour of pursuers; leases remain in force; defenders liable for rent since May 2013.
Legal Topics
Break Clauses in Leases, Interpretation of Contractual Terms, Repairing Obligations, Notice Requirements
Contract Law Property Law Landlord and Tenant Break Clauses in Leases Interpretation of Contractual Terms Repairing Obligations Notice Requirements

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Parties

Arlington Business Parks GP Limited

Pursuer

Scottish & Newcastle Limited

Defender

Procedural Posture

Commercial Lease Dispute / Opinion of the Court (outer House, Court of Session)

Legal Issues

  1. 1 Whether the tenants were in breach of their obligations at the date of service of notice and/or the termination date under clause SECOND of the leases
  2. 2 Whether non-performance of repairing obligations constitutes a breach for the purposes of exercising a break option
  3. 3 Proper construction of the term 'breach' in the context of the lease

Ratio Decidendi

The tenants were in breach of their repairing obligations at the date of service of the break notices, and under the proper construction of clause SECOND, any breach at either the date of notice or the termination date invalidates the break notice. Therefore, the leases remain in force and the tenants are liable for rent from the purported termination date.

Court Disposition

Declarator granted in favour of pursuers; leases remain in force; defenders liable for rent since May 2013.

Orders

  • Declarators in terms of the first and second conclusions granted (leases remain in force)
  • Case to be put out by order for formulation of appropriate financial order regarding rent due since May 2013