ASHTEAD PLANT HIRE COMPANY LTD AGAINST GRANTON CENTRAL DEVELOPMENTS LTD [2020] ScotCS CSIH_2 (21 January 2020)

ASHTEAD PLANT HIRE COMPANY LTD AGAINST GRANTON CENTRAL DEVELOPMENTS LTD [2020] ScotCS CSIH_2 (21 January 2020)

The fourth disregard in the rent review clause must be construed in context and with commercial common sense; it applies only to improvements or buildings constructed by the tenant at its cost, or by the landlord after the date of entry. Disregarding all buildings, including those provided by the landlord, would contradict the lease's definition of the subjects and flout commercial common sense, resulting in a disproportionate burden and windfall for the tenant.

Citation
[2020] ScotCS CSIH_2
Parties
Pursuer and Respondent: Ashtead Plant Hire Company Limited; Defender and Reclaimer: Granton Central Developments Limited
Jurisdiction
Scotland
Judgment Date
21 January 2020
Procedural Posture
Commercial Lease Dispute / Appeal (reclaiming Motion) Before Inner House, Court of Session
Outcome
Appeal allowed; action dismissed as irrelevant.
Legal Topics
Lease Interpretation, Rent Review Clauses, Commercial Common Sense, Contractual Construction
Property Law Contract Law Lease Interpretation Rent Review Clauses Commercial Common Sense Contractual Construction

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Parties

Ashtead Plant Hire Company Limited

Pursuer and Respondent

Granton Central Developments Limited

Defender and Reclaimer

Procedural Posture

Commercial Lease Dispute / Appeal (reclaiming Motion) Before Inner House, Court of Session

Legal Issues

  1. 1 Proper construction of rent review clause in commercial lease
  2. 2 Scope of disregard for buildings and improvements in calculating open market rent

Ratio Decidendi

The fourth disregard in the rent review clause must be construed in context and with commercial common sense; it applies only to improvements or buildings constructed by the tenant at its cost, or by the landlord after the date of entry. Disregarding all buildings, including those provided by the landlord, would contradict the lease's definition of the subjects and flout commercial common sense, resulting in a disproportionate burden and windfall for the tenant.

Court Disposition

Appeal allowed; action dismissed as irrelevant.

Orders

  • Recall interlocutors of the Lord Ordinary dated 5 February 2019 except as limited to amendment of pleadings.
  • Sustain second plea in law for the defender.