@SIPP (Pension Trustees) Ltd v Insight Travel Services Ltd [2015] ScotCS CSIH_91 (11 December 2015)

@SIPP (Pension Trustees) Ltd v Insight Travel Services Ltd [2015] ScotCS CSIH_91 (11 December 2015)

The lease, properly construed, imposes on the tenant an obligation to put and keep the premises in good and substantial repair, not merely to maintain them in their condition at entry. Clause 7 entitles the landlord, upon notice, to payment of the cost of repairs required to bring the premises up to that standard, irrespective of the landlord’s intention to carry out the works or the effect on capital value. The Lord Ordinary erred in construing the lease otherwise.

Citation
[2015] ScotCS CSIH_91
Parties
Pursuer and Reclaimer: @SIPP Pension Trustees Ltd; Defender and Respondent: Insight Travel Services Ltd
Jurisdiction
Scotland
Judgment Date
11 December 2015
Procedural Posture
Reclaiming Motion (appeal) in Commercial Lease Dispute / Appeal Judgment (inner House, Extra Division, Court of Session)
Outcome
Reclaiming motion allowed; Lord Ordinary’s interlocutor reversed.
Legal Topics
Commercial Leases, Repairing Obligations, Measure of Damages, Contractual Interpretation
Property Law Contract Law Landlord and Tenant Commercial Leases Repairing Obligations Measure of Damages Contractual Interpretation

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 3 Authorities cited 15 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

@SIPP Pension Trustees Ltd

Pursuer and Reclaimer

Insight Travel Services Ltd

Defender and Respondent

Procedural Posture

Reclaiming Motion (appeal) in Commercial Lease Dispute / Appeal Judgment (inner House, Extra Division, Court of Session)

Legal Issues

  1. 1 What is the proper construction of the tenant’s repairing obligations under clause 3(a) of the lease?
  2. 2 Does clause 7 entitle the landlord to payment of the cost of repairs irrespective of diminution in capital value or intention to repair?

Ratio Decidendi

The lease, properly construed, imposes on the tenant an obligation to put and keep the premises in good and substantial repair, not merely to maintain them in their condition at entry. Clause 7 entitles the landlord, upon notice, to payment of the cost of repairs required to bring the premises up to that standard, irrespective of the landlord’s intention to carry out the works or the effect on capital value. The Lord Ordinary erred in construing the lease otherwise.

Court Disposition

Reclaiming motion allowed; Lord Ordinary’s interlocutor reversed.

Orders

  • Reinstatement of the words 'put and' in article 10 of Condescendence.
  • Exclusion from probation of specified averments in answers 11 and 13.