header-logo header-logo

Gathering the Harvest

11 November 2010 / John Furber KC
Issue: 7441 / Categories: Features , Landlord&tenant , Property
printer mail-detail

John Furber QC revisits authorised guarantee agreements

The decision of Newey J in Good Harvest Partnership LLP v Centaur Services Ltd [2010] EWHC 330 (Ch) is of practical importance to investors in commercial property. Where such property is let, its value is primarily determined by reference to the rent payable under the lease and the strength of the covenants ensuring payment of that rent. The Landlord and Tenant (Covenants) Act 1995 provides for the release of such covenants in certain circumstances and may also have effect so that some covenants, albeit freely entered into, may be void from the start. The Good Harvest case is concerned with the scope of these provisions. When it was last considered in this journal, an appeal was pending; that appeal has not been pursued, following a settlement, and the consequences of the decision should now be given further consideration (NLJ, 4 June 2010, p 791).

The difficulties and uncertainties relate to covenants given by guarantors. The position as to covenants given by a tenant is simple enough;

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

DWF—19 appointments

DWF—19 appointments

Belfast team bolstered by three senior hires and 16 further appointments

Cadwalader—Andro Atlaga

Cadwalader—Andro Atlaga

Firm strengthens leveraged finance team with London partner hire

Knights—Ella Dodgson & Rebecca Laffan

Knights—Ella Dodgson & Rebecca Laffan

Double hire marks launch of family team in Leeds

NEWS
Charles Pigott of Mills & Reeve reports on Haynes v Thomson, the first judicial application of the Supreme Court’s For Women Scotland ruling in a discrimination claim, in this week's NLJ
Charlie Mercer and Astrid Gillam of Stewarts crunch the numbers on civil fraud claims in the English courts, in this week's NLJ. New data shows civil fraud claims rising steadily since 2014, with the King’s Bench Division overtaking the Commercial Court as the forum of choice for lower-value disputes
The Supreme Court issued a landmark judgment in July that overturned the convictions of Tom Hayes and Carlo Palombo, once poster boys of the Libor and Euribor scandal. In NLJ this week, Neil Swift of Peters & Peters considers what the ruling means for financial law enforcement
Small law firms want to embrace technology but feel lost in a maze of jargon, costs and compliance fears, writes Aisling O’Connell of the Solicitors Regulation Authority in this week's NLJ
Artificial intelligence may be revolutionising the law, but its misuse could wreck cases and careers, warns Clare Arthurs of Penningtons Manches Cooper in this week's NLJ
back-to-top-scroll