Bradford & Bingley Building Society v Thorntons Plc [1998] ScotCS 78 (26 November 1998)

Bradford & Bingley Building Society v Thorntons Plc [1998] ScotCS 78 (26 November 1998)

Interest on the shortfall rent under sub-clause 1(c) is payable from the relevant rent review date until payment, as this reflects the parties' intention that the landlord should ultimately recover rent at the reviewed rate from that date. The landlord's choice of apportionment basis for common costs under sub-clause 4(d) is subject to an obligation to act equitably, and the concept of 'an equitable share' imports an objective standard of fairness, though the landlord retains the decision unless the choice is inequitable.

Citation
[1998] ScotCS 78
Parties
Pursuer: Bradford & Bingley Building Society; Defender: Thorntons PLC
Jurisdiction
Scotland
Judgment Date
26 November 1998
Procedural Posture
Commercial Lease Dispute / Interlocutory Judgment on Construction of Lease and Apportionment of Costs
Outcome
Partial judgment; interest issue determined, further proof required on apportionment issue.
Legal Topics
Rent Review, Interest on Arrears, Apportionment of Common Costs, Interpretation of Lease Terms, Equitable Share
Landlord and Tenant Contract Law Property Law Rent Review Interest on Arrears Apportionment of Common Costs Interpretation of Lease Terms Equitable Share

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 3
Sign in to unlock

Parties

Bradford & Bingley Building Society

Pursuer

Thorntons PLC

Defender

Procedural Posture

Commercial Lease Dispute / Interlocutory Judgment on Construction of Lease and Apportionment of Costs

Legal Issues

  1. 1 From what date is interest payable on the shortfall rent following delayed rent review determination?
  2. 2 What constitutes an 'equitable share' for apportionment of common repair costs under the lease, and is the landlord's choice of basis fettered by reasonableness or equity?

Ratio Decidendi

Interest on the shortfall rent under sub-clause 1(c) is payable from the relevant rent review date until payment, as this reflects the parties' intention that the landlord should ultimately recover rent at the reviewed rate from that date. The landlord's choice of apportionment basis for common costs under sub-clause 4(d) is subject to an obligation to act equitably, and the concept of 'an equitable share' imports an objective standard of fairness, though the landlord retains the decision unless the choice is inequitable.

Court Disposition

Partial judgment; interest issue determined, further proof required on apportionment issue.

Orders

  • Interest on the shortfall rent is payable from the rent review date until payment.
  • Case to be put out By Order for further procedure regarding apportionment of costs.