Dem-Master Demolition Ltd v Healthcare Environmental Services Ltd [2017] Scotcs Csoh_14 (31 January 2017)

Dem-Master Demolition Ltd v Healthcare Environmental Services Ltd [2017] Scotcs Csoh_14 (31 January 2017)

The repairing obligation in clause 6 of the lease is not rendered absolute by the absence of a photographic schedule. The obligation is to maintain the premises in the condition at entry, as would have been evidenced by the schedule, and the factual matrix supports that the parties did not intend an unqualified full repairing obligation. The absence of the schedule does not shift the obligation to an absolute standard; instead, the tenant is liable to keep the premises in the same condition as at the start of the lease, subject to the exceptions in clause 6.

Citation
[2017] CSOH 14
Parties
Pursuer: Dem-Master Demolition Limited; Defender: Healthcare Environmental Services Limited
Jurisdiction
Scotland
Judgment Date
31 January 2017
Procedural Posture
Commercial Lease Dispute / Preliminary Proof on Construction of Repairing Obligations
Outcome
For the defenders; repairing obligation is not absolute.
Legal Topics
Repairing Obligations, Construction of Lease Terms, Schedules of Condition, Dilapidations, Commercial Leases
Property Law Landlord and Tenant Repairing Obligations Construction of Lease Terms Schedules of Condition Dilapidations Commercial Leases

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Parties

Dem-Master Demolition Limited

Pursuer

Healthcare Environmental Services Limited

Defender

Procedural Posture

Commercial Lease Dispute / Preliminary Proof on Construction of Repairing Obligations

Legal Issues

  1. 1 What is the proper construction of the repairing obligation in clause 6 of the lease in the absence of a photographic schedule?
  2. 2 Does the absence of a photographic schedule render the tenant's repairing obligation absolute or qualified by the condition at entry?
  3. 3 What is the factual matrix relevant to the parties' intentions regarding repairing obligations?

Ratio Decidendi

The repairing obligation in clause 6 of the lease is not rendered absolute by the absence of a photographic schedule. The obligation is to maintain the premises in the condition at entry, as would have been evidenced by the schedule, and the factual matrix supports that the parties did not intend an unqualified full repairing obligation. The absence of the schedule does not shift the obligation to an absolute standard; instead, the tenant is liable to keep the premises in the same condition as at the start of the lease, subject to the exceptions in clause 6.

Court Disposition

For the defenders; repairing obligation is not absolute.

Orders

  • Proof before answer on the remaining issues; parties to be heard further on quantification and liability for specific items of dilapidation.