Prudential Assurance Co ltd v Grand Metropolitan Estate Ltd
Prudential Assurance Co ltd v Grand Metropolitan Estate Ltd
- 1993
- Estates Gazette (1993) 32 EG 74-78(5) .
ChD 19 March 1993. By an underlease G occupied a public house. The rent review clause directed that any effect on rent of the fact that the tenant had been in occupation must be disregarded. An arbitrator set the rent at £41,500 by the profits method. The landlord (P) requested that the award be remitted under Arbitration Act 1950 s22 on the grounds that the arbitrator had misunderstood the landlord` surveyor`s submissions on the question of whether the goodwill and profit potential deriving from the trading potential as a public house should be disregarded or taken into account. They also claimed the arbitrator had erred by assuming that the premises had not previously been used as a public house. The arbitrator sought legal advice to the effect that if one is to disregard the effect on rent of the fact that the tenant has been in occupation of the demised premises, it follows that goodwill generated by that occupation must be disregarded. P appealed but this was dismissed.
ARBITRATION ACT 1950 S22
DISREGARDS
PUBLIC HOUSE
RENT REVIEWS
ChD 19 March 1993. By an underlease G occupied a public house. The rent review clause directed that any effect on rent of the fact that the tenant had been in occupation must be disregarded. An arbitrator set the rent at £41,500 by the profits method. The landlord (P) requested that the award be remitted under Arbitration Act 1950 s22 on the grounds that the arbitrator had misunderstood the landlord` surveyor`s submissions on the question of whether the goodwill and profit potential deriving from the trading potential as a public house should be disregarded or taken into account. They also claimed the arbitrator had erred by assuming that the premises had not previously been used as a public house. The arbitrator sought legal advice to the effect that if one is to disregard the effect on rent of the fact that the tenant has been in occupation of the demised premises, it follows that goodwill generated by that occupation must be disregarded. P appealed but this was dismissed.
ARBITRATION ACT 1950 S22
DISREGARDS
PUBLIC HOUSE
RENT REVIEWS