Legal & General stands to lose £4m in rent after the high court ruled in favour of a tenant in a lease break dispute.
The court ruled that cargo distributor Expeditors International (UK) was entitled to terminate its leases at three units at the Heathrow International Trading Estate, Hounslow, in 2004.
It has granted permission to challenge the ruling, however.
A spokesperson said L&G was “considering its position”, and had until 17 May to decide whether it would appeal.
L&G was suing for rent and service charge arrears, claiming the tenant had invalidated its break notices by failing to leave the property on 30 December 2004.
It alleged that Expeditors had not surrendered its keys to units 15 to 17 at the estate in Green Lane and that it had left behind a “large quantity of unwanted property”, including dismantled steelwork and two gas tanks.
But on 28 April, Mr Justice Lewison held that, although Expeditors had failed to release the properties with vacant possession by December 2004, L&G had “waived” the requirement by earlier accepting £172,000 in full settlement of dilapidations.
He said Expeditors was entitled to expect that the October 2004 payment released it from all liabilities.
Expeditors held leases at the three units until 2011 but in 2004 transferred its business to a 97,100 sq ft warehouse at Brixton’s Polar Park, in Harmondsworth, Middlesex.
References: EGi News 15/05/06
