Commercial property disputes in the high court are soaring as the economic downturn bites.
Landlords and tenants rowing over subletting, service charges, dilapidations and other property-related issues were responsible for 40 cases in the high court in 2009, up from 28 in 2008.
Sweet & Maxwell, which obtained the fi gures, said companies were trying to cut their overheads by shedding excess offi ce and retail space and this often put the landlord at a disadvantage, leading to a dispute and then litigation. Subletting is a common source of friction where landlords may fear submarket sublets will have a detrimental eff ect on future rent reviews and on the overall investment value of the property.
Disputes often arise over service charges, which can be particularly high in the retail sector, as tenants will scrutinise their contracts during diffi cult economic times.
