Manchester Associated Mills Ltd v Mitchells & Butler Retail Ltd [2013] ScotCS CSOH_2 (10 January 2013)

Manchester Associated Mills Ltd v Mitchells & Butler Retail Ltd [2013] ScotCS CSOH_2 (10 January 2013)

The arbitrator erred in law by fixing the minimum and maximum rent levels solely by reference to general market conditions, disregarding the lease's requirement that rent be based on 7% of gross annual turnover, subject to reviewable minimum and maximum figures. The lease intended a link between the 7% turnover provision and the minimum and maximum amounts, and the arbitrator's approach did not reflect the parties' agreement.

Citation
[2013] ScotCS CSOH_2
Parties
Petitioner: Manchester Associated Mills Limited; Respondent: Mitchells & Butler Retail Limited
Jurisdiction
Scotland
Judgment Date
10 January 2013
Procedural Posture
Appeal Under the Arbitration (scotland) Act 2010 / Judgment on Appeal Against Arbitral Award
Outcome
Appeal allowed; arbitrator's determination quashed and matter remitted for reconsideration.
Legal Topics
Rent Review, Interpretation of Lease Terms, Arbitration Appeals, Minimum and Maximum Rent Provisions
Arbitration Landlord and Tenant Commercial Leases Rent Review Interpretation of Lease Terms Arbitration Appeals Minimum and Maximum Rent Provisions

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 2 Authorities cited 3 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Manchester Associated Mills Limited

Petitioner

Mitchells & Butler Retail Limited

Respondent

Procedural Posture

Appeal Under the Arbitration (scotland) Act 2010 / Judgment on Appeal Against Arbitral Award

Legal Issues

  1. 1 Whether the arbitrator erred in law by determining minimum and maximum rent levels by reference to market conditions rather than the 7% turnover provision in the lease
  2. 2 Whether the arbitrator's approach was consistent with the intention of the parties as expressed in the lease

Ratio Decidendi

The arbitrator erred in law by fixing the minimum and maximum rent levels solely by reference to general market conditions, disregarding the lease's requirement that rent be based on 7% of gross annual turnover, subject to reviewable minimum and maximum figures. The lease intended a link between the 7% turnover provision and the minimum and maximum amounts, and the arbitrator's approach did not reflect the parties' agreement.

Court Disposition

Appeal allowed; arbitrator's determination quashed and matter remitted for reconsideration.

Orders

  • The arbitrator's determination dated 1 August 2012 is quashed.
  • The matter is remitted to the arbitrator for reconsideration in accordance with the court's opinion.