header-logo header-logo

Showing good cause

07 January 2010 / James Davies
Issue: 7399 / Categories: Features , Property
printer mail-detail

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

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

CBI South-East Council—Mike Wilson

CBI South-East Council—Mike Wilson

Blake Morgan managing partner appointed chair of CBI South-East Council

Birketts—Phillippa O’Neill

Birketts—Phillippa O’Neill

Commercial dispute resolution team welcomes partner in Cambridge

Charles Russell Speechlys—Matthew Griffin

Charles Russell Speechlys—Matthew Griffin

Firm strengthens international funds capability with senior hire

NEWS
The proposed £11bn redress scheme following the Supreme Court’s motor finance rulings is analysed in this week’s NLJ by Fred Philpott of Gough Square Chambers
In this week's issue, Stephen Gold, NLJ columnist and former district judge, surveys another eclectic fortnight in procedure. With humour and humanity, he reminds readers that beneath the procedural dust, the law still changes lives
Generative AI isn’t the villain of the courtroom—it’s the misunderstanding of it that’s dangerous, argues Dr Alan Ma of Birmingham City University and the Birmingham Law Society in this week's NLJ
James Naylor of Naylor Solicitors dissects the government’s plan to outlaw upward-only rent review (UORR) clauses in new commercial leases under Schedule 31 of the English Devolution and Community Empowerment Bill, in this week's NLJ. The reform, he explains, marks a seismic shift in landlord-tenant power dynamics: rents will no longer rise inexorably, and tenants gain statutory caps and procedural rights
Writing in NLJ this week, James Harrison and Jenna Coad of Penningtons Manches Cooper chart the Privy Council’s demolition of the long-standing ‘shareholder rule’ in Jardine Strategic v Oasis Investments
back-to-top-scroll