ASHTEAD PLANT HIRE COMPANY LIMITED AGAINST GRANTON CENTRAL DEVELOPMENTS LIMITED [2019] ScotCS CSOH_7 (25 January 2019)

ASHTEAD PLANT HIRE COMPANY LIMITED AGAINST GRANTON CENTRAL DEVELOPMENTS LIMITED [2019] ScotCS CSOH_7 (25 January 2019)

Disregard (4) in clause Third(c)(ii) of the lease, as amended, requires the surveyor to disregard the value of any buildings or other constructions erected on and any improvements carried out to the subjects of lease when ascertaining the open market rent; the natural and ordinary meaning of the words, in context, supports this interpretation, and the defender's alternative readings are inconsistent with the clause's language.

Citation
[2019] ScotCS CSOH_7
Parties
Pursuer: Ashtead Plant Hire Company Limited; Defender: Granton Central Developments Limited
Jurisdiction
Scotland
Judgment Date
25 January 2019
Procedural Posture
Commercial Action (declarator) / Judgment After Debate (no Proof Sought)
Outcome
Declarator in favour of the pursuer (subject to adjustment of precise terms); case put out by order for discussion of declarator wording; expenses reserved.
Legal Topics
Rent Review, Interpretation of Lease Provisions, Effect of Disregards in Rent Review Clauses
Landlord and Tenant Commercial Leases Contract Interpretation Rent Review Interpretation of Lease Provisions Effect of Disregards in Rent Review Clauses

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Parties

Ashtead Plant Hire Company Limited

Pursuer

Granton Central Developments Limited

Defender

Procedural Posture

Commercial Action (declarator) / Judgment After Debate (no Proof Sought)

Legal Issues

  1. 1 Whether the rent review clause in the lease requires the open market rent to be calculated disregarding the value of any buildings or constructions on the premises.
  2. 2 Proper interpretation of disregard (4) in clause Third(c)(ii) of the lease.

Ratio Decidendi

Disregard (4) in clause Third(c)(ii) of the lease, as amended, requires the surveyor to disregard the value of any buildings or other constructions erected on and any improvements carried out to the subjects of lease when ascertaining the open market rent; the natural and ordinary meaning of the words, in context, supports this interpretation, and the defender's alternative readings are inconsistent with the clause's language.

Court Disposition

Declarator in favour of the pursuer (subject to adjustment of precise terms); case put out by order for discussion of declarator wording; expenses reserved.

Orders

  • Case put out by order for discussion of the precise terms of declarator to be granted.
  • All questions of expenses reserved.