Important Appeal Updates

Refusals of new business tenancies for "artificial" redevelopments - S Franses Ltd v The Cavendish Hotel (London) Ltd [2017] EWHC 1670

The Supreme Court has granted the Tenant permission to appeal in the case of S Franses Ltd v The Cavendish Hotel (London) Ltd. This is a leapfrog appeal to the Supreme Court, bypassing the Court of Appeal. The Queen's Bench Division held in favour of the landlord.

The case raises some important issues concerning the proper operation of the security of tenure provisions set out in the Landlord and Tenant Act 1954. In particular, the Court will consider the question of whether a landlord can prevent the grant of a new tenancy by devising an artificial scheme of works to the premises, solely for the purpose of satisfying the redevelopment ground to refuse a new lease. The issue is potentially of importance to thousands of business tenants and their landlords across England and Wales.

The appeal is due to be heard in the coming months. In the meantime please see our article on the original High Court decision from April 2017 for further reference.

Breach of trust and fraudulent sales: Dreamvar (UK) Ltd v Mishcon de Reya [2016] EWHC 3316 (Ch)

The appeal of Dreamvar (UK) Ltd v Mishcon de Reya was heard in late February and we are now awaiting the judgement.

The case was first heard in in November 2016. In summary, Mischon de Reya were found liable for breach of trust in connection with a case of identity fraud involving an imposter posing as the owner of a property. Mishcon re Reya's application for relief under s. 61 of the Trustee Act 1925 was refused. The controversial ruling meant Mishcon de Reya were ordered to pay over £1 million to Dreamvar.

Whilst we wait for the judgement from the appeal please see our article from when the case was first decided.

Read more articles in RED Alert - Spring 2018