Little Cumbrae Estates Ltd v. Island Of Little Cumbrae Ltd [2006] ScotSC 70 (05 December 2006)

Little Cumbrae Estates Ltd v. Island Of Little Cumbrae Ltd [2006] ScotSC 70 (05 December 2006)

The lease did not transfer the repair obligation to the tenant in circumstances where damage was caused by an insured risk and insurance monies were not irrecoverable due to the tenant. Therefore, the tenant was relieved of the obligation to repair, and at common law, the obligation fell on the landlord. A term was implied into the lease obliging the landlord to repair in these circumstances.

Citation
[2006] ScotSC 70
Parties
Appellants/pursuers: Little Cumbrae Estates Ltd; Respondents/defenders: Island of Little Cumbrae Ltd
Jurisdiction
Scotland
Judgment Date
05 December 2006
Procedural Posture
Appeal / Judgment on Appeal
Outcome
appeal refused
Legal Topics
Implied Terms in Leases, Repair Obligations, Insurance in Leases, Allocation of Repair Costs, Common Law Obligations
Landlord and Tenant Contract Law Property Law Implied Terms in Leases Repair Obligations Insurance in Leases Allocation of Repair Costs Common Law Obligations

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Parties

Little Cumbrae Estates Ltd

Appellants/pursuers

Island of Little Cumbrae Ltd

Respondents/defenders

Procedural Posture

Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether the lease imposed an obligation on the landlord to effect repairs when damage was caused by an insured risk and insurance monies were insufficient
  2. 2 Whether a term should be implied into the lease obliging the landlord to repair in such circumstances

Ratio Decidendi

The lease did not transfer the repair obligation to the tenant in circumstances where damage was caused by an insured risk and insurance monies were not irrecoverable due to the tenant. Therefore, the tenant was relieved of the obligation to repair, and at common law, the obligation fell on the landlord. A term was implied into the lease obliging the landlord to repair in these circumstances.

Court Disposition

appeal refused

Orders

  • Remits the cause to the sheriff to proceed as accords
  • Finds the appellants and pursuers liable to the respondents and defenders in the expenses of the appeal procedure