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The first case relating to competition clauses in leases to be considered is Martin Retail Group Limited –v- Crawley Borough Council, but this is only a County Court decision.
This was a lease renewal of premises in a shopping arcade. The landlord agreed to extend the user but only if it excluded a series of goods including other uses within Class A1 resulting in a letting scheme. The clause being in breach of the Competition Act, could it be saved by an exemption? The Council argued that the letting scheme would be beneficial to all its tenants in the parade; the Court did not accept this. No evidence was offered to substantiate the tenant mix policy. The judge accepted if the scheme was set up amongst all the tenants he might have come to a different decision.
Landlords and tenants need to be aware of the dangers of restrictive covenant provisions becoming void, particularly if it is not possible to sever the clause in question.
Break rights have proved a fertile source of litigation over the last few years. More often than not, tenants have found themselves on the wrong end of the decisions. However, a Court of Appeal decision yesterday has bucked that trend.
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One of the requirements for tenants to contract out of the security of tenure regime contained in the Landlord and Tenant Act 1954 is that they make a simple or statutory declaration before entering into the lease.
Landlords should reconsider summary judgment if a Part 26A restructuring plan is pending.
A landlord’s claim for summary judgment to recover rent and service charge arrears accrued since the start of the pandemic against a non-essential retailer succeeded. Like London buses, a second such case has followed hot on its heels.
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