PP 2003/2

Covenant against competition: direct enforcement against neighbouring retailer Q  Adam’s leasehold camera shop is suffering loss of trade because Ben is offering photographic equipment from his pharmacy in the same parade. Both leases purport to restrict duplication of this kind. The common landlord cannot be obliged (or readily persuaded) to take appropriate action. Can Adam proceed directly against Ben? A  The prospects for Adam have been considerably improved as a result of the Court of Appeal decision in Williams v Kiley (t/a CK Supermarkets Ltd) [2003] 06 EG 147. As explained by Sandi Murdoch in Sweetshop revenge Estates Gazette 25 January 2003, p150, this decides that there is no reason in principle for confining the letting scheme (or building scheme) line of cases to residential estates. So far so good, but Adam still has to ascertain whether the detailed rules governing such schemes have been observed: see Hill and Redman’s Guide to Landlord and Tenant Law, para 4.102. Related item: PP 2002/30