Trygort (Number 2) Ltd v UK Home Finance Ltd & Anor [2008] ScotCS CSIH_56 (29 October 2008)

Trygort (Number 2) Ltd v UK Home Finance Ltd & Anor [2008] ScotCS CSIH_56 (29 October 2008)

The relevant break clause is ambiguous as to whether any past breach, even if remedied, precludes exercise of the break option. Commercial sense and longstanding authority favour the construction that only a subsisting breach at the time of notice prevents exercise of the option. Therefore, the tenant was entitled to exercise the break option as there was no subsisting breach at the relevant time.

Citation
[2008] ScotCS CSIH_56
Parties
Pursuer and Appellant: Trygort (Number 2) Limited; First Defender and Respondent: UK Home Finance Limited; Guarantor/defender and Respondent: Another (Second Respondent)
Jurisdiction
Scotland
Judgment Date
29 October 2008
Procedural Posture
Appeal From Sheriff Court (commercial Lease Dispute) / Appellate Judgment (inner House, Court of Session)
Outcome
Appeal refused; sheriff's dismissal of the action affirmed.
Legal Topics
Interpretation of Break Clauses, Remedies for Breach of Lease, Commercial Lease Construction
Contract Law Landlord and Tenant Law Commercial Law Interpretation of Break Clauses Remedies for Breach of Lease Commercial Lease Construction

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 6 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Trygort (Number 2) Limited

Pursuer and Appellant

UK Home Finance Limited

First Defender and Respondent

Another (Second Respondent)

Guarantor/defender and Respondent

Procedural Posture

Appeal From Sheriff Court (commercial Lease Dispute) / Appellate Judgment (inner House, Court of Session)

Legal Issues

  1. 1 Whether a tenant's right to exercise a break option in a lease is lost by any past breach of covenant, even if remedied, or only by a subsisting breach at the time of notice
  2. 2 Proper construction of break clause in commercial lease

Ratio Decidendi

The relevant break clause is ambiguous as to whether any past breach, even if remedied, precludes exercise of the break option. Commercial sense and longstanding authority favour the construction that only a subsisting breach at the time of notice prevents exercise of the option. Therefore, the tenant was entitled to exercise the break option as there was no subsisting breach at the relevant time.

Court Disposition

Appeal refused; sheriff's dismissal of the action affirmed.

Orders

  • Action dismissed; tenant entitled to exercise break option as there was no subsisting breach at the time of notice.