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R & A Millett (Shops) Ltd v Leon Allan International Fashions Ltd

Language: English Series: Estates Gazette ; (1989) 18 EG 107-111(3)Publication details: 1989Subject(s): Summary: CA 19 December 1988. Appeal by underlessees (L) from previous decision in favour of underlessors (M) concerning the construction of clause in a rent review . A formula contained in the review clause in the underlease referred to the rent in the headlease; it contained no reference to a fair market rent. The dispute arose because the original headlease had been surrendered and a new headlease granted; this lease was expressly stated to be subject to, and with the benefit of, the underlease. The relevant clause in the original headlease indicated that the object was to reach a fair market rack rent of the premises. At issue was whether M was still entitled to a rent review in accordance with the clause in the underlease as they submitted, or whether the review clause ceased to be operative as L contended. CA followed Sudbrook Trading Estate Ltd v Eggleton (1983), where it was held that the rent review clause in the underlease was not void for uncertainty; the judge ordered an inquiry a
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Item type Current library Call number Copy number Status Barcode
Law report London Journal article ABS40812 (Browse shelf(Opens below)) 1 Available 26126-1001

CA 19 December 1988. Appeal by underlessees (L) from previous decision in favour of underlessors (M) concerning the construction of clause in a rent review . A formula contained in the review clause in the underlease referred to the rent in the headlease; it contained no reference to a fair market rent. The dispute arose because the original headlease had been surrendered and a new headlease granted; this lease was expressly stated to be subject to, and with the benefit of, the underlease. The relevant clause in the original headlease indicated that the object was to reach a fair market rack rent of the premises. At issue was whether M was still entitled to a rent review in accordance with the clause in the underlease as they submitted, or whether the review clause ceased to be operative as L contended. CA followed Sudbrook Trading Estate Ltd v Eggleton (1983), where it was held that the rent review clause in the underlease was not void for uncertainty; the judge ordered an inquiry a