BRUCEFIELD ESTATE TRUSTEE Ltd & Ors AGAINST COMPUTACENTER (UK) Ltd [2017] ScotSC 38 (30 June 2017)

BRUCEFIELD ESTATE TRUSTEE Ltd & Ors AGAINST COMPUTACENTER (UK) Ltd [2017] ScotSC 38 (30 June 2017)

Clause 9 of the lease did not expressly require written notice to terminate the lease for the purposes of excluding tacit relocation, and the actions of the landlords or their agents did not amount to clear, definite, and unconditional notice of termination. Therefore, the lease continued by tacit relocation for one year, and the tenants were liable for the rent claimed.

Citation
[2017] ScotSC 38
Parties
Pursuer: BRUCEFIELD ESTATE TRUSTEE COMPANY LIMITED (As Trustee for the Brucefield Estate Unit Trust) (In Liquidation), Michael Magnay, Philip Stephen Bowers (Liquidators); Defender: COMPUTACENTER (UK) LIMITED
Jurisdiction
Scotland
Judgment Date
30 June 2017
Procedural Posture
Commercial Lease Dispute / Sheriff Court Judgment After Debate on Preliminary Pleas in Law
Outcome
Decree granted in favour of the pursuers (landlords).
Legal Topics
Tacit Relocation, Lease Termination, Notice Requirements, Common Law Rights, Interpretation of Contract Clauses
Property Law Landlord and Tenant Law Contract Law Tacit Relocation Lease Termination Notice Requirements Common Law Rights Interpretation of Contract Clauses

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Parties

BRUCEFIELD ESTATE TRUSTEE COMPANY LIMITED (As Trustee for the Brucefield Estate Unit Trust) (In Liquidation), Michael Magnay, Philip Stephen Bowers (Liquidators)

Pursuer

COMPUTACENTER (UK) LIMITED

Defender

Procedural Posture

Commercial Lease Dispute / Sheriff Court Judgment After Debate on Preliminary Pleas in Law

Legal Issues

  1. 1 Whether the lease continued by tacit relocation for a further year after expiry
  2. 2 Whether written notice was required to terminate the lease under clause 9
  3. 3 Whether the landlords' or their agents' actions amounted to sufficient notice to exclude tacit relocation

Ratio Decidendi

Clause 9 of the lease did not expressly require written notice to terminate the lease for the purposes of excluding tacit relocation, and the actions of the landlords or their agents did not amount to clear, definite, and unconditional notice of termination. Therefore, the lease continued by tacit relocation for one year, and the tenants were liable for the rent claimed.

Court Disposition

Decree granted in favour of the pursuers (landlords).

Orders

  • Declarator that the lease continued by tacit relocation for one year from 29 May 2015 and terminated on 28 May 2016.
  • Decree for payment by the defender to the pursuer of £72,647.44 Sterling with interest at 8% per annum from the date of citation until payment.