St Modwen Developments (Edmonton) Ltd v. Tesco Stores Ltd
St Modwen Developments (Edmonton) Ltd v. Tesco Stores Ltd
- 2007
[2006] EWCH 3177 (Ch), 10 November 2006. The claimant acquired the freehold reversion to premises that were occupied by the defendant under a lease granted by the bourough council, as the claimant's predecessors in title, for a term of 99 years from September 1973. The lease provided for the payment of service charges to "the Council" in an amount to be certified annually by "the Council's Borough Treasurer". A dispute arose between the parties as to the payment of service charges following the claimant's acquisition of the freehold. They disagreed over the proper person to certify the charges. The claimant brought proeceedings to establish its entitlement to i) service charges certified by its finance director in place of the borough treasurer; ii) a contribution to the costs of refuse collection for other tenants; and iii) a 10% management fee. "Held": the claim was allowed in part. It was decided that the parties had not anticipated that at the time the lease was granted, the power to issue a certificate creating a legal liability to pay should be given to whoever might happen to have that financial role in the organisation of some future assignee. The borough treasurer had a well-established status and commanded the parties' confidence and in the absence of this person no new person should be assigned to take over this function. The new landlord retained its contractual right to recover service charges but had to bring its claim in a court, subject to the arbitration provisions of the lease.
ST MODWEN DEVELOPMENTS (EDMONTON) LTD V TESCO STORES LTD
England--886-
[2006] EWCH 3177 (Ch), 10 November 2006. The claimant acquired the freehold reversion to premises that were occupied by the defendant under a lease granted by the bourough council, as the claimant's predecessors in title, for a term of 99 years from September 1973. The lease provided for the payment of service charges to "the Council" in an amount to be certified annually by "the Council's Borough Treasurer". A dispute arose between the parties as to the payment of service charges following the claimant's acquisition of the freehold. They disagreed over the proper person to certify the charges. The claimant brought proeceedings to establish its entitlement to i) service charges certified by its finance director in place of the borough treasurer; ii) a contribution to the costs of refuse collection for other tenants; and iii) a 10% management fee. "Held": the claim was allowed in part. It was decided that the parties had not anticipated that at the time the lease was granted, the power to issue a certificate creating a legal liability to pay should be given to whoever might happen to have that financial role in the organisation of some future assignee. The borough treasurer had a well-established status and commanded the parties' confidence and in the absence of this person no new person should be assigned to take over this function. The new landlord retained its contractual right to recover service charges but had to bring its claim in a court, subject to the arbitration provisions of the lease.
ST MODWEN DEVELOPMENTS (EDMONTON) LTD V TESCO STORES LTD
England--886-