header-logo header-logo

15 October 2010 / James Naylor
Issue: 7437 / Categories: Features , Landlord&tenant , Property
printer mail-detail

Whodunit?

James Naylor investigates the importance of interpretation

If it wasn’t quite a case of legal whodunit in Roadside Group Limited v Zara Commercial Limited [2010] EWHC 1950 (Ch) it wasn’t far off, in this helpful user covenant case. On appeal, the High Court investigated whether a sub-tenant could put a tenant in breach of its parking covenants. In deciding the case, the High Court provided useful guidance on interpreting user covenants, and, in particular, the effect of a draughtsman using an “active” or “passive” voice.

Z granted an underlease to R of a petrol station, car showroom (with two flats over it), service garage and hard standing. Z retained further land adjacent to and to the south of R’s demised premises. The underlease contained a parking user covenant: “Not to use the demised premises or any part thereof for the sale of motor vehicles by auction or for the parking of motor vehicles for sale on any forecourt” (the Parking Covenant).

R then granted a sub-lease of part to Triple Eight “which for some time

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

Walkers—Muriel Marseille

Walkers—Muriel Marseille

Ashurst's Chief Risk Officer joins Walkers

Excello Law—John Osborne

Excello Law—John Osborne

Northern family lawyer John Osborne joins Excello

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

Trio of promotions announced at Kidderminster law firm mfg Solicitors

NEWS
A sole director can conspire with their own company for the purposes of the tort of unlawful means conspiracy, the High Court has ruled in a judgment with potentially wide implications for business disputes
The Court of Appeal has reinforced that domicile depends on intention rather than residence alone, in a significant post-Brexit ruling on cross-border financial remedy claims
The Chancery Division's long history comes to an end this autumn as it is reborn as the Business and Property Division, prompting questions over whether the shake-up is really necessary
The Financial Conduct Authority (FCA) continues to show that failing to disclose regulatory issues can attract harsher consequences than the original misconduct itself
Rejecting a generous settlement can prove an expensive mistake, as two recent high-profile cases demonstrate
back-to-top-scroll