Possfund Custodian Trustee Ltd v. Kwik Fit Properties Ltd [2008] ScotCS CSOH_79 (29 May 2008)

Possfund Custodian Trustee Ltd v. Kwik Fit Properties Ltd [2008] ScotCS CSOH_79 (29 May 2008)

Clause 3.11 of the lease entitles the landlord to carry out inspection and examination of the premises, including intrusive works such as drilling boreholes, as the reference to 'workmen' and the purpose of ascertaining the state and condition of the premises support a broader interpretation. The power of inspection is not limited to superficial visual inspection, and such works are permissible provided they are conducted with reasonable regard for the tenant's business.

Citation
[2008] ScotCS CSOH_79
Parties
Pursuer: Possfund Custodian Trustee Limited; Defender: Kwik-Fit Properties Limited
Jurisdiction
Scotland
Judgment Date
29 May 2008
Procedural Posture
Commercial Lease Dispute / Debate on Legal Entitlement to Carry Out Intrusive Inspection; Interlocutory Decision
Outcome
Order for proof before answer granted; defenders' submission rejected.
Legal Topics
Right of Landlord to Inspect, Intrusive Inspection Works, Lease Interpretation, Environmental Investigation, Tenant's Right to Possession
Landlord and Tenant Property Law Right of Landlord to Inspect Intrusive Inspection Works Lease Interpretation Environmental Investigation Tenant's Right to Possession

Case Brief

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Parties

Possfund Custodian Trustee Limited

Pursuer

Kwik-Fit Properties Limited

Defender

Procedural Posture

Commercial Lease Dispute / Debate on Legal Entitlement to Carry Out Intrusive Inspection; Interlocutory Decision

Legal Issues

  1. 1 Whether the landlord is entitled under the lease to carry out intrusive inspection works, including drilling boreholes, to investigate possible contamination of the premises.

Ratio Decidendi

Clause 3.11 of the lease entitles the landlord to carry out inspection and examination of the premises, including intrusive works such as drilling boreholes, as the reference to 'workmen' and the purpose of ascertaining the state and condition of the premises support a broader interpretation. The power of inspection is not limited to superficial visual inspection, and such works are permissible provided they are conducted with reasonable regard for the tenant's business.

Court Disposition

Order for proof before answer granted; defenders' submission rejected.

Orders

  • Proof before answer to proceed on the issue of entitlement to carry out intrusive inspection works.