The Court of Appeal, in the conjoined appeals of London Trocadero (2015) LLP v Picturehouse Cinemas Ltd and Bank of New York Mellon (International) Ltd v Cine-UK Ltd, once again vindicated beleaguered landlords by refusing to imply terms into professionally negotiated leases. Tenants cannot withhold rent except in circumstances expressly set out in the lease.
Buttressing the judgment is the reiteration of the stated “fundamental basis” of a lease: it is an estate granting exclusive possession for a fixed term, in consideration for payment of rent. The tenants’ frustrated intention to use the premises as a cinema was not sufficient to cause a total failure of consideration.
Continue Reading The Picturehouse litigation: post-Covid, the Court of Appeal emphasises that contracts are meant to be binding