Property Litigation Solicitors

Client Intro

Our client is a landlord of a significant portfolio of commercial properties.

Case Overview:

One of the properties is located in Northumberland and was leased to Marks & Spencer’s PLC (M&S). M&S assigned the lease to The Factory Shop Limited, and M&S entered into a Deed of Guarantee and Indemnity in respect of that assignment.

The Factory Shop entered into a CVA, and the CVA included provision for the surrender of the lease and compromised the company’s liability for terminal dilapidations.

The CVA cut down M&S’s secondary obligations in the guarantee meaning that M&S’s had no liability under the guarantee in respect of the terminal dilapidations, but the CVA could not and did not cut down M&S’s primary obligations in the guarantee meaning that M&S remained liable for the dilapidations in full as if the CVA had not existed.

The lease was subsequently surrendered, and our client moved to address terminal dilapidations, carrying out repair works to the value of £130,000

Laura Pile, a Partner in the Property Litigation team, said, “This was a complex matter where we argued that the CVA did not compromise the indemnity.”

Client Intro: Akzo Nobel, Imperial Chemical Industries and Dulux Decorator Centres

Our client has a multimillion-pound rental portfolio across England and Wales.

Case Overview:

We regularly advise our client in relation to the management of their commercial property portfolio. This includes lease renewals, dilapidations claims, landlord/tenant covenants, rent reviews and break rights.

Laura Pile, a Partner in the Property Litigation team, said this type of work demonstrates our capabilities in commercial portfolio management for blue chip corporations.

Client Intro: Philip J Davies (Holdings) PLC

Our client is a commercial landlord and property developer.

Case Overview:

Philip J Davies (Holdings) PLC held the reversion to a long lease of an entire building that had been rented to Carillion. Carillion had underlet part of the building to a charity.

Carillion entered liquidation, and the liquidators disclaimed the head lease, leaving the undertenant in occupation, but its right to occupy was affected by the disclaimer.

We advised our client regarding their options, given a possible re-letting of the entire premises to a school (which was the condition upon the charity vacating).

Avoiding the situation where the charity became a periodic tenant or sought a vesting order, our client forfeited the charity’s under lease and granted them a license to occupy, which enabled the charity time to find alternative accommodation and enabled our client to secure vacant possession which enabled the reletting of the entire building to the school.

Client Intro: Marnshaw Limited

Our client is a landlord of commercial property.

Case Overview:

Our client leased commercial premises to Andrew Page Limited (car parts supplier).

The tenant entered administration. The administrators agreed to sell the assets of the tenant company to Euro Car Parts, a deal which was called in by the Competitions and Market Authority.

The administrators allowed an SPV of Euro Car Parts to enter into occupation of the premises without consent and began trading.

Our client had a new tenant ready to take a new lease on the premises where the SPV was in occupation and trading. We invited the administrators to surrender the lease or, in the alternative, allow our client to bring forfeiture proceedings. They refused both.

Our client brought proceedings against the tenant in administration, at which point the administrators agreed to surrender, thereby enabling our client to rent out the property to the new tenant.

Client Intro: Monckton Properties Limited

Our client is a landlord of a number of commercial properties.

Case Overview:

Our client is the landlord of a commercial property in Knutsford Cheshire. The property was let to Tesla Motors Limited who purported to exercise a break option contained in the lease.

The tenant failed to adhere to the conditions of the break so our client issued proceedings for a declaration that the lease is subsisting and a monetary claim for sums due and owing to them. The matter was settled fairly early on in the litigation and it was a good result for our client.