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20 April 2007 / Sebastian Kokelaar
Issue: 7269 / Categories: Features , Landlord&tenant , Terms&conditions , Property
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Damage limitation

How do the rules relating to mitigation of loss apply to leases? Sebastian Kokelaar explains

In Reichman and another v Beveridge and another [2006] EWCA Civ 1659, [2006] All ER (D) 186 (Dec) a landlord let office premises to two solicitors on a five-year lease. Three years into the term the tenants ceased to practise as solicitors and stopped paying the rent.

The landlord decided not to forfeit the lease, but brought a money claim against the defendants for the accrued arrears of rent. In their defence the tenants argued, among other things, that the landlord should have mitigated his losses by forfeiting the lease and re-letting the premises. The district judge at first instance rejected this argument, as did the circuit judge on the first appeal. The Court of Appeal gave leave for a second appeal on the ground that the case raised an important point of law.

PRINCIPLE IN WHITE

The difficulty faced by the tenants was that the claim against them was not, strictly speaking, a claim for damages, but

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The Attorney General, Ellie Reeves KC MP, and Solicitor General, Andy Slaughter KC MP, marked the 25th anniversary of Pro Bono Week by joining lawyers, charities, students and parliamentarians at events celebrating voluntary legal work
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A polished legal defence may owe more to artificial intelligence than legal merit—and creditors risk paying the price in delay and expense
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
Possession claims are entering a new digital era, with procedural traps awaiting practitioners who assume familiar rules still govern every step
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