header-logo header-logo

14 June 2007 / Elizabeth Fitzgerald , Greville Healey
Issue: 7277 / Categories: Features , Family , Property
printer mail-detail

True intentions

Elizabeth Fitzgerald and Greville Healey discuss the construction of leases and the property rights of cohabiting couples

In KPMG v Network Rail Infrastructure Ltd [2007] EWCA Civ 363, [2007] All ER (D) 245 (Apr), the Court of Appeal considered the interpretation of a break clause in a lease from which it was apparent that some critical words had been omitted. Lord Justice Carnwath—with whom Sir Paul Kennedy and Lord Justice Mummery agreed—stated at para 8 that the issues for the court were whether that omission could be corrected by any legally permissible technique, or, if not, what meaning should be ascribed to the clause. At first instance the judge upheld Network Rail’s case for rectification based upon mutual mistake, and KPMG appealed.

QUESTION OF CONSTRUCTION

As regards rectification, the Court of Appeal held that the judge had been wrong on the facts to hold that there was convincing proof that the relevant common intention continued up to the grant of the lease in question, and so allowed the appeal on this point.

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

Signature Litigation—Catherine Naylor

Signature Litigation—Catherine Naylor

International fraud and asset recovery offering boosted by partner hire

Stevens & Bolton—Alexa Payet

Stevens & Bolton—Alexa Payet

Private wealth disputes team adds contentious probate specialist

Morgan Lewis—Paul Feldberg

Morgan Lewis—Paul Feldberg

Firm strengthens investigations and sanctions capabilities with London partner hire

NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
back-to-top-scroll