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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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MOVERS & SHAKERS

Arc Pensions Law—Matthew Swynnerton

Arc Pensions Law—Matthew Swynnerton

Chair of the Association of Pension Lawyers joins as partner

Ampa Group—Kamal Chauhan

Ampa Group—Kamal Chauhan

Group names Shakespeare Martineau partner head of Sheffield office

Blake Morgan—four promotions

Blake Morgan—four promotions

Four legal directors promoted to partner across UK offices

NEWS

The abolition of assured shorthold tenancies and section 21 evictions marks the beginning of a ‘brave new world’ for England’s rental sector, writes Daniel Bacon of Seddons GSC

Stephen Gold’s latest Civil Way column rounds up a flurry of procedural and regulatory changes reshaping housing, alternative dispute resolution (ADR) and personal injury litigation
Patients are being systematically failed by an NHS complaints regime that is opaque, poorly enforced and often stacked against them, argues Charles Davey of The Barrister Group
A wealthy Russian divorce battle has produced a sharp warning about trying to challenge foreign nuptial agreements in the wrong English court. Writing in NLJ this week, Vanessa Friend and Robert Jackson of Hodge Jones & Allen examine Timokhin v Timokhina, where the High Court enforced Russian judgments arising from a prenuptial agreement despite arguments based on the landmark Radmacher decision
An obscure Victorian tort may be heading for an unexpected revival after a significant Privy Council ruling that could reshape liability for dangerous escapes, according to Richard Buckley, barrister and emeritus professor of law at the University of Reading
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