Legal & General Assurance Society Ltd v Tesco Stores Ltd [2001] ScotCS 119 (18 May 2001)

Legal & General Assurance Society Ltd v Tesco Stores Ltd [2001] ScotCS 119 (18 May 2001)

The court held that the landlord's right to alter or redevelop the car park is subject to the lease provisions, including the requirement not to alter the Tenant's Car Park without the tenant's consent, which cannot be unreasonably withheld. The proposed alterations constituted a variation requiring consent. The tenant's refusal was based on concerns about parking sufficiency, configuration, and competition, which were not unreasonable or collateral. Therefore, consent was not unreasonably withheld.

Citation
[2001] ScotCS 119
Parties
Pursuer: Legal & General Assurance Society Limited; Defender: Tesco Stores Limited
Jurisdiction
Scotland
Judgment Date
18 May 2001
Procedural Posture
Commercial Lease Dispute / Outer House, Court of Session, Opinion After Proof
Outcome
Action dismissed
Legal Topics
Interpretation of Lease Provisions, Withholding of Consent, Redevelopment Rights, Car Park Rights, Reasonableness of Refusal
Property Law Landlord and Tenant Law Contract Law Interpretation of Lease Provisions Withholding of Consent Redevelopment Rights Car Park Rights Reasonableness of Refusal

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 4 Authorities cited 10 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Legal & General Assurance Society Limited

Pursuer

Tesco Stores Limited

Defender

Procedural Posture

Commercial Lease Dispute / Outer House, Court of Session, Opinion After Proof

Legal Issues

  1. 1 Whether the landlord (pursuers) is entitled to alter and permit use of the car park for customers of a new adjacent development without the tenant's (defender's) consent
  2. 2 Whether the tenant (Tesco) unreasonably withheld consent to alterations to the Tenant's Car Park under Clause 7.4.4 of the lease
  3. 3 Proper interpretation of the lease provisions regarding rights to alter, redevelop, and use the car park

Ratio Decidendi

The court held that the landlord's right to alter or redevelop the car park is subject to the lease provisions, including the requirement not to alter the Tenant's Car Park without the tenant's consent, which cannot be unreasonably withheld. The proposed alterations constituted a variation requiring consent. The tenant's refusal was based on concerns about parking sufficiency, configuration, and competition, which were not unreasonable or collateral. Therefore, consent was not unreasonably withheld.

Court Disposition

Action dismissed

Orders

  • Declarator refused; the tenant did not unreasonably withhold consent under Clause 7.4.4 of the lease.