@SIPP (PENSION TRUSTEES) Ltd AGAINST INSIGHT TRAVEL SERVICES Ltd [2014] ScotCS CSOH_137 (04 September 2014)

@SIPP (PENSION TRUSTEES) Ltd AGAINST INSIGHT TRAVEL SERVICES Ltd [2014] ScotCS CSOH_137 (04 September 2014)

The tenant's obligation at termination is limited to maintaining the premises in at least as good condition as at acceptance, not to put them into a better condition. The landlord's entitlement to payment equal to the cost of repairs is conditional upon its intention to carry out the works; the tenant may offer to prove that the proper measure of loss is diminution in value rather than cost of repair.

Citation
[2014] ScotCS CSOH_137
Parties
Pursuer: @SIPP (Pension Trustees) Limited; Defender: Insight Travel Services Limited
Jurisdiction
Scotland
Judgment Date
04 September 2014
Procedural Posture
Commercial Lease Dispute / Opinion Following Debate on Principal Issues
Outcome
Case put out by order for further procedure; pursuer's claim for improvement beyond commencement condition not relevantly stated; tenant may offer to prove alternative measure of loss.
Legal Topics
Commercial Leases, Repairing Obligations, Measure of Damages, Interpretation of Lease Clauses
Property Law Contract Law Commercial Leases Repairing Obligations Measure of Damages Interpretation of Lease Clauses

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Parties

@SIPP (Pension Trustees) Limited

Pursuer

Insight Travel Services Limited

Defender

Procedural Posture

Commercial Lease Dispute / Opinion Following Debate on Principal Issues

Legal Issues

  1. 1 Whether tenant's obligation at termination is limited to the condition at commencement of lease
  2. 2 Whether landlord is entitled to payment equal to cost of repairs regardless of intention to carry out works

Ratio Decidendi

The tenant's obligation at termination is limited to maintaining the premises in at least as good condition as at acceptance, not to put them into a better condition. The landlord's entitlement to payment equal to the cost of repairs is conditional upon its intention to carry out the works; the tenant may offer to prove that the proper measure of loss is diminution in value rather than cost of repair.

Court Disposition

Case put out by order for further procedure; pursuer's claim for improvement beyond commencement condition not relevantly stated; tenant may offer to prove alternative measure of loss.

Orders

  • Case to be addressed on further procedure
  • Pursuer's claim for improvement beyond commencement condition rejected