When it comes to leases, most people believe that landlords hold most of the power. However, in relation to long residential leases, the tables may well have recently turned in one respect at least following a recent Supreme Court decision.
Generally speaking, when it comes to leases, most people believe that landlords hold most of the power. However, in relation to long residential leases, the tables may well have recently turned in one respect at least following a recent Supreme Court decision. Simply put, a landlord is not now free to license works in breach of an absolute prohibition in a lease against carrying out alterations without the agreement of all the other flat tenants in a block where a landlord has covenanted to enforce similar obligations against all the tenants in the block (known as a mutual enforcement covenant).
As a result, it now appears that a tenant has increased control over its landlord’s decisions. A landlord is no longer freely able to agree works (that may be perfectly reasonable and well intentioned) falling within an absolute prohibition without first obtaining the agreement of all the tenants who benefit from a mutual enforcement covenant. In other words, tenants in a block may now have the power to control certain alterations a landlord may consent to. At the most extreme limits of such power, tenants could potentially prevent alterations occurring altogether since, in a block with a substantial number of flats, it is highly likely that at least one tenant will object to works being carried out.
This case demonstrates just how careful residential landlords in a block are going to have to be when receiving requests to license something which is otherwise absolutely prohibited under a lease. This applies not just in relation to alterations, but potentially extends to any absolute prohibitions under a lease (e.g. those relating to use). Mutual enforcement covenants are not a requirement under the current edition of the Council of Mortgage Lenders’ Handbook, so a landlord may wish to consider whether it enters into mutual enforcement covenants in the future, especially given how easy it could prove to breach those covenants.
Settlement agreements are commonplace in an employment context and are ordinarily used to provide the parties to the agreement with certainty following the conclusion of an employment relationship.
Claims arising from interest-only mortgages have been farmed in volume. Many such claims to date have sought to drive a narrative that interest-only mortgages are an inherently toxic product and brokers were negligent simply for suggesting them. Taylor is a helpful recalibration, focussing instead on what the monies raised by the mortgage product were being used for and whether the client understood the inherent risks.
In a judgment handed down yesterday the Supreme Court has affirmed that a so called “creditor duty” exists for directors such that in some circumstances company directors are required to act in accordance with, or to consider the interests of creditors. Those circumstances potentially arise when a company is insolvent or where there is a “probability” of an insolvency. We explore below the “trigger” for such a test to apply and its implications.
Created at the end of the Brexit transition period, Retained EU Law is a category of domestic law that consists of EU-derived legislation retained in our domestic legal framework by the European Union (Withdrawal) Act 2018. This was never intended to be a permanent arrangement as parliament promised to deal with retained EU law through the Retained EU Law (Revocation and Reform) Bill (the “Bill”).
Practice Direction 57AC (“PD57AC”) relates to witness evidence in trials and explicitly applies only to the Business and Property Courts. It applies to existing proceedings in which the witness statements for trial are signed on or after 6 April 2021.
The Supreme Court has unanimously dismissed the BTI v Sequana appeal and reviewed the existence, content and engagement of the so-called ‘creditor duty’; being the point at which the interest of creditors is said to intrude upon the decision-making of directors of companies in financial distress.
The increased use of artificial intelligence (AI) is revolutionising the way businesses operate and is having a disruptive impact in sectors that have traditionally been slow to modernise.
In November 2021, The Civil Justice Council’s published its interim report on proposed changes to the current Pre-Action Protocols, which included a mandatory Alternative Dispute Resolution (ADR) gateway. In this article, we look at proposed reforms and consider what this could mean for your case.
Janice Walsh applied for a job with Domino’s Pizza, hoping to secure a role as a Delivery Driver. However things quickly took a turn for the worse during her initial interview, with the very first question that she was asked relating to her age. Ms Walsh was ultimately informed that she had not been successful in her application.
The Court of Appeal has dismissed two cases regarding rent arrears accrued during the Covid lockdowns. The cases are London Trocadero (2015) LLP v Picturehouse Cinemas Ltd and Bank of New York Mellon (International) Ltd v Cine-UK Ltd.
In the recent case of Dwyer (UK Franchising) Limited v Fredbar Limited and ano’r [2022] EWCA Civ 889, the Court of Appeal considered the reasonableness of restrictive covenants in a franchise agreement.
On 14 February 2022, Secretary of State of the Department for Levelling Up, Housing and Communities, Michael Gove, announced proposals designed to pressure building developers and materials manufacturers to fund the remediation of unsafe properties.
Read more about our latest real estate update aimed at in-house lawyers practising in the property and real estate sector.
The Employment Appeal Tribunal (EAT) decision in the case of Warburton v The Chief Constable.
Restrictive covenants are widely recognised as a complex area of employment law that is of key importance to many organisations. However more recently, they have become a hot topic with the Government launching their consultation.
In Nissan v Passi, the High Court recently considered the issue of an employee retaining confidential documents belonging to his former employer in the context of the employer’s application for an injunction seeking the return of such documents from the employee.
We regularly encounter disputes relating to Service Level Agreement provisions - here we provide four top tips that you can use to minimise disputes.
The Highway Code has had its first major revision since 2007. Amongst several changes, a new hierarchy has been created, with road users who are most likely to cause harm having the greatest responsibility to reduce the threat they may pose to other road users (rule 204 of the Code).
We were delighted to be joined by Dr Nigel Sturrock, Regional Medical Director for the Midlands at NHS England and NHS Improvement. He gave an overview of the pressures placed on the NHS by the pandemic, including the impact on urgent and emergency care, elective procedures and staffing.
Read more about our latest real estate update aimed at in-house lawyers practising in the property and real estate sector.
Schools will need to comply with the requirements of the PAPDC or potentially face financial consequences. This article provides an overview of the PAPDC and explains how it applies to schools.
Following on from our recent article on the release of the updated Code of Practice for dealing with commercial rent arrears that have accrued throughout the pandemic, we continue to highlight what the overall principles seek to ensure - fairness and proportionality for both landlords and tenants across each step of the arbitration process.
The Supreme Court has unanimously overturned the Court of Appeal’s 2019 decision in the case Lloyd (Respondent) v Google LLC (Appellant) which allowed the claimant, Mr Lloyd, to serve a representative action on Google on behalf of over four million iPhone users who were seeking damages for ‘loss of control’ of personal data.
It is an unfortunate reality that many local authorities face historical abuse claims, and often held vicariously liable for abuse by their former employees. We set out an overview of recoveries law and insight into successes we have had in recouping money for local authorities.
The ‘new normal’ has brought with it a variety of different challenges and it has had an impact on nearly all facets of our lives, including the termination of contracts during these Covid-19 times.
The PAPDC does not apply to business to business debt only if the debtor is a sole trader. Much more information is required under the PAPDC within a letter of claim and debtors should be given more time to respond along with an opportunity to make payment proposals throughout the pre-action process.
For business disputes, it looks likely that remote hearings will be an option into the future.
The recent decision of the Supreme Court in Triple Point Technology, Inc. v PTT Public Company Ltd [2021] UKSC 29 has brought long-awaited clarity to the proper approach to the interpretation and application of liquidated damages clauses where works under a contract are delayed and the contract is terminated before the works are completed.
The Supreme Court’s pending decision could potentially open the floodgates for data privacy litigation going forward.
A number of interesting developments have emerged from what was quite a run-of-the-mill insolvency application brought by a litigation funder assignee.
The Technology and Construction Court has recently handed down judgment in a complex and high value claim brought by the Co-op’s insurance arm (CIS) against IBM following the termination of a contract for a new IT system.
The Civil Procedure (Amendment) Rules 2021 (‘the CPAR 2021’) introduces a new Civil Procedure Rule 36.5(5) to clarify the issue of interest after the expiry of Part 36 offers.
From 26 March 2021 the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) Regulations 2021 will come into force with the effect of extending several of the temporary measures brought in by the Corporate Insolvency and Governance Act 2020 (CIGA).
In this training video participants and their organisations will be starting to look beyond the immediate impact of Covid-19, now planning for the future of litigation including child abuse litigation.
The Ministry of Justice has recently released its civil justice statistics for the period October to December 2020. These statistics show an overall significant downward trend in claim activity compared to pre-Covid times.
What are the key changes to Practice Direction 57AC and Statement of Best Practice, and what are the challenges for legal representatives?
