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07 January 2010 / James Davies
Issue: 7399 / Categories: Features , Property
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Showing good cause

Leases & the costs of proceedings investigated by James Davies

A costs provision in a lease can go against provisions of the Civil Procedure Rules relating to fixed costs regimes and even the principle of costs following the event.

The recent case of Forcelux Ltd v Binnie (LTL 21/10/09) provides an illustration of the general principle as set out in Church Commissioners v Ibrahim [1997] 1 EGLR 13 and its application to the costs of an unsuccessful appeal.

The starting point

In considering the general principle and when it does and does not apply it is sometimes possible to overlook what should always be the starting point in any case: what the relevant covenant in the lease actually says.

A well drafted costs covenant will provide that the tenant will indemnify the lessor on the full indemnity basis for all legal costs caused by the tenant’s breach of any covenant under the lease. Less well drafted clauses may provide that the tenant will pay the lessor’s costs “which may be incurred in or in

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London Solicitors Litigation Association—John McElroy

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Three men wrongly imprisoned for a combined 77 years have been released—yet received ‘not a penny’ in compensation, exposing deep flaws in the justice system. Writing in NLJ this week, Dr Jon Robins reports on Justin Plummer, Oliver Campbell and Peter Sullivan, whose convictions collapsed amid discredited forensics, ‘oppressive’ police interviews and unreliable ‘cell confessions’
A quiet month for employment cases still delivers key legal clarifications. In his latest Employment Law Brief for NLJ, Ian Smith reports that whistleblowing protection remains intact even where disclosures are partly self-serving, provided the worker reasonably believes they serve the ‘public interest’ 
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