Mapeley Acquisition Co (3) Ltd v City of Edinburgh Council [2015] ScotCS CSOH_29 (24 March 2015)

Mapeley Acquisition Co (3) Ltd v City of Edinburgh Council [2015] ScotCS CSOH_29 (24 March 2015)

The correct construction of clause 3.37.2 is that the landlord is only entitled to payment equal to the cost of works if it has carried out or intends to carry out the works; notional costs for works not done or intended are not recoverable. Clause 3.37.1.1 obliges the tenant to replace only those fixtures, fittings, and plant and equipment which are missing, broken, worn, damaged or destroyed at lease expiry, not all items present at the date of entry regardless of condition.

Citation
[2015] ScotCS CSOH_29
Parties
Pursuer: Mapeley Acquisition Co (3) Limited (In Receivership); Defender: City of Edinburgh Council
Jurisdiction
Scotland
Judgment Date
24 March 2015
Procedural Posture
Commercial Action / Opinion Following Debate on Preliminary Issues
Outcome
Case put out by order for further discussion; pursuer's averments held irrelevant unless works are carried out or intended to be carried out.
Legal Topics
Lease Interpretation, Repairing Obligations, Dilapidations, Remedies for Breach of Lease
Property Law Contract Law Lease Interpretation Repairing Obligations Dilapidations Remedies for Breach of Lease

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Parties

Mapeley Acquisition Co (3) Limited (In Receivership)

Pursuer

City of Edinburgh Council

Defender

Procedural Posture

Commercial Action / Opinion Following Debate on Preliminary Issues

Legal Issues

  1. 1 Whether clause 3.37.2 entitles landlord to payment of cost of repairs regardless of intention to carry out works
  2. 2 Whether clause 3.37.1.1 obliges tenant to replace all plant and equipment at lease expiry or only those missing, broken, worn, damaged or destroyed

Ratio Decidendi

The correct construction of clause 3.37.2 is that the landlord is only entitled to payment equal to the cost of works if it has carried out or intends to carry out the works; notional costs for works not done or intended are not recoverable. Clause 3.37.1.1 obliges the tenant to replace only those fixtures, fittings, and plant and equipment which are missing, broken, worn, damaged or destroyed at lease expiry, not all items present at the date of entry regardless of condition.

Court Disposition

Case put out by order for further discussion; pursuer's averments held irrelevant unless works are carried out or intended to be carried out.

Orders

  • Case to be put out by order to discuss appropriate interlocutor and all other matters arising from the decision.