
Dementia currently affects 1 in 14 people in the UK. Many people will either know someone with dementia, have had to support and care for someone with dementia or have been diagnosed themselves.
This case is about the tricky and contested issue of break clauses. Often, the exercise of a break option is conditional on the tenant paying the rent in full for the given quarter. But what happens if the break falls in between a rent quarter? Can the tenant apportion rent to the break date? Should the tenant pay the full quarter, but then seek a refund for the period after the break date? This recent case involving M&S clarifies the position.
Facts
The main issue was whether the tenant was entitled to recover rent and other sums from the break date to 24 March 2012, the end of the paid-up quarter. The tenant argued that a term should be implied into the lease to this effect. In 2013, the High Court held that the tenant was entitled to reclaim rent and other sums, but the Court of Appeal allowed the defendants’ appeal in 2014.
Supreme Court judgment
The Supreme Court upheld the decision of the Court of Appeal. It rejected the tenant’s argument that there should be an obligation implied into the lease, requiring the landlords to pay back rent, relating to the period from the break date to the end of the rent quarter. The Supreme Court held that a term will only be implied into a lease if it satisfies the test of business necessity or it is so obvious that it goes without saying. The Court held that this test was not satisfied in the circumstances.
So where does this leave us and what does this mean for you?
For advice on exercising break clauses to end leases or any aspects of a disputed or potentially contentious break clause, please contact Hilary Harrison.
Dementia currently affects 1 in 14 people in the UK. Many people will either know someone with dementia, have had to support and care for someone with dementia or have been diagnosed themselves.
The 2022 Code replaces the NHF Code of Conduct 2012 (the 2012 Code) and sets out the baseline standards that the NHF expects of its member registered providers (RPs).
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In this podcast, Puja Desai interviews Kimberley Foster and discusses her experience with counselling. This is a really helpful podcast for anyone who has thought about counselling.