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Schedules and notices

This page includes information on the following topics:
  • Alterations - notices to re-instate.
  • Collateral agreements
  • PLA Dilapidations protocol
  • Notice of disrepair (Princes House Ltd)

Alterations - notice to re-instate

Westminster City Council v HSBC Bank plc
[2003] EWHC; [2003] 16 EG 103 (Mr Recorder Black QC, sitting as a High Court Judge).

Facts

Over a number of years alteration works had been carried out to the building pursuant to licences to do those works. Each licence stated that the tenant should re-instate at the end of the term, using words such as "should the landlord require" or "if required by the lessor". At the end of the lease the landlord served a schedule of dilapidations, which contained a requirement to re-instate. The schedule did not refer to the licences. The tenant argued that a reasonable recipient of the schedule of dilapidations might have some doubt as to whether or not the schedule was also a notice under the relevant licences. Was this sufficient notice?

Held

Yes. Mannai Investment Co Ltd v Eagle Star Life Assurance Co Ltd [1997] UKHL 19; [1997] 1 EGLR 57 relied upon.
    "I must .. consider whether the schedule of dilapidations, when property construed, amounts to a requirement to reinstate in accordance with the licences. The schedule did not, as a matter of act, refer to the licences. The appropriate test is whether, nevertheless, a reasonable recipient would have understood one of the purposes of the schedule as giving the notice necessary to invoke the reinstatement obligations. I find that a reasonable recipient in the position of the [tenant] would not have been misled as to the [landlord's] intentions. When I focus upon the fact, as I am enjoined to do by Lord Steyn's speech in Mannai, that a reasonable recipient is bound to have the terms of the lease in the forefront of his mind, I am confident that the schedule would be understood to be referring to reinstatement under the licences, given that the authorised alterations could be called upon to be removed and reinstated only under the licences."

Collateral contract

Landlord agreeing not to serve schedule of dilapidations

... THIS IS AN EXTRACT OF THE FULL TEXT. TO GET THE FULL TEXT, SEE BELOW

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