The lessors of a South Kensington property have warded off a High Court challenge to their refusal to assign the remainder of the term of the lease of 1 Thurloe Close.
The claimants in the case, Tiffany Investments Ltd (a Jersey company associated with a Robert Nelson) and Coral Chantry, argued that they were entitled to be assigned the remainder of the term of the lease from the lessees, the Rt Hon Robin Bailie and his wife, Margaret Bailie. However, the lessors, Bircham & Co Nominees (No 2) Ltd and SE Stowell, resisted this claim.
The lease of the premises included, at clause 5, a right of first refusal in favour of the lessors. The lessors argued that a February 2002 clause 5 offer to them, by the Bailies, of the unexpired term of the lease for £250,000, which they accepted, constituted a valid assignment of the lease to them.
Backing the lessors’ stance, Lindsay J found that they had not been notified, under clause 5 of the lease, of a 1986 agreement whereby the Bailies had assigned to Tiffany the residue of the lease for £250,000.
In the circumstances, the judge held: “It might be thought unfair that the lessors should acquire the residue of the lease in 2003 but at a 1986 price& I have had no evidence that the lessors would have declined the offer at £250,000 in 1986 had it been made to them, or that £250,000 was then such a price as would have been likely to have been declined.”
He added: “I see no unfairness or inequity in the lessors retaining the advantage of the assignment executed in their favour in 2002.”
Tiffany Investments Ltd and another v Bircham & Co Nominees (No 2) Ltd and others Chancery Division (Lindsay J) 7 February 2003.
Timothy Dutton (instructed by Amhurst Brown Colombotti) appeared for the claimants; John McGhee (instructed by Bircham Dyson Bell) appeared for the first and second defendants; Edward Denehan (instructed by Williams Sturgess & Co) appeared for the third and fourth defendants.
References: PLS News 11/02/03
