Equity & Law Life Assurance Society PLC v Bodfield Ltd
Equity & Law Life Assurance Society PLC v Bodfield Ltd
- 1987
- Estates Gazette 281 (6327) 28 March 1987, 1448-1452 (3) .
CA 19 March 1987. Appeal by tenant from decision in favour of landlords regarding the true construction of a rent review clause . As guidance, the court considered British Gas Corporation v Universities Superannuation Scheme (Abstract 36103). In the present case the rent review provisions included a formula with the unusual feature that a discount on the "net rental value" was allowed to the tenants. This was defined as the best open market rent on the assumption that the hypothetical lease should be on the same terms as the actual lease, "other than as to duration and rent". At issue was whether this reference to rent required that the terms as to future rent reviews contained in the existing lease should be included in the hypothetical lease. The landlords contended that the hypothetical lease should contain no rent review provisions and the previous judge agreed. The tenants appealed. CA affirmed previous decision, holding that provisions relating to discount from the net rent cou
CONSTRUCTION OF CLAUSE
CA 19 March 1987. Appeal by tenant from decision in favour of landlords regarding the true construction of a rent review clause . As guidance, the court considered British Gas Corporation v Universities Superannuation Scheme (Abstract 36103). In the present case the rent review provisions included a formula with the unusual feature that a discount on the "net rental value" was allowed to the tenants. This was defined as the best open market rent on the assumption that the hypothetical lease should be on the same terms as the actual lease, "other than as to duration and rent". At issue was whether this reference to rent required that the terms as to future rent reviews contained in the existing lease should be included in the hypothetical lease. The landlords contended that the hypothetical lease should contain no rent review provisions and the previous judge agreed. The tenants appealed. CA affirmed previous decision, holding that provisions relating to discount from the net rent cou
CONSTRUCTION OF CLAUSE