Dollar Land (Cumbernauld) Ltd v CIN Properties Ltd (Scotland)
Dollar Land (Cumbernauld) Ltd v CIN Properties Ltd (Scotland)
- 1998
- Estates Gazette Law Reports 9851 19 December 1998, 88-89(2) .
HL 16 July 1998. An agreement made by CIN and CDC whereby CDC would develop a shopping centre and grant a headlease to CIN for 125 years. CIN agreed inter alia to finance the development and on completion grant a sublease, which contained a conventional irritancy (forfeiture) clause, to CDC for 99 years. CIN were to obtain a return on their investment through rent paid under the sublease and CDC would receive rents from the subtenants. The sublease was assigned by CDC to the appellants DLC. When DLC failed to pay rent under the sublease CIN as landlord raised an action for declarator of irritancy of the sublease. The LO granted the decree resulting in CIN becoming entitled to absolute possession. DLC appealed on the grounds that due to the complex commercial arrangement, the court had the power to remedy the tenant where the enrichment to the landlord was disproportionate to the breach. Held, appeal dismissed.
DOLLAR LAND (CUMBERNAULD) LTD V CIN PROPERTIES LTD
FORFEITURE
IRRITANCY CLAUSES
LAW REFORM (MISCELLANEOUS PROVISIONS) (SCOTLAND) ACT 1985 S4(2)
SUBLEASES
UNJUST ENRICHMENT
HL 16 July 1998. An agreement made by CIN and CDC whereby CDC would develop a shopping centre and grant a headlease to CIN for 125 years. CIN agreed inter alia to finance the development and on completion grant a sublease, which contained a conventional irritancy (forfeiture) clause, to CDC for 99 years. CIN were to obtain a return on their investment through rent paid under the sublease and CDC would receive rents from the subtenants. The sublease was assigned by CDC to the appellants DLC. When DLC failed to pay rent under the sublease CIN as landlord raised an action for declarator of irritancy of the sublease. The LO granted the decree resulting in CIN becoming entitled to absolute possession. DLC appealed on the grounds that due to the complex commercial arrangement, the court had the power to remedy the tenant where the enrichment to the landlord was disproportionate to the breach. Held, appeal dismissed.
DOLLAR LAND (CUMBERNAULD) LTD V CIN PROPERTIES LTD
FORFEITURE
IRRITANCY CLAUSES
LAW REFORM (MISCELLANEOUS PROVISIONS) (SCOTLAND) ACT 1985 S4(2)
SUBLEASES
UNJUST ENRICHMENT