Clothing retail giant Gap has won a High Court battle over the lease of its Covent Garden outlet.
Warwick Ltd, a footwear and leather goods retailer, was appealing the dismissal of its claim for damages for breach of contract, following Gap’s failure to complete a contract to assign the lease of its shop at 2-3 James Street, London, WC2.
Warwick and Gap had agreed for the sale of the lease, subject to a landlord’s right of pre-emption, under which the landlord had to serve notice on Gap at the latter’s registered office and business address. However, Gap and its landlord agreed that the notice could instead be served on Gap’s solicitors by fax.
The landlord duly served a pre-emption notice, whereupon Gap surrendered the lease to the landlord and the contract for sale to Warwick was terminated.
Warwick claimed that Gap had breached the contract by varying the service requirements and should therefore pay it damages.
Warwick’s claim was summarily dismissed and it appealed to the High Court.
Michael Furness QC, sitting as a deputy judge, held that the claim had “no realistic prospect of success”.
Giving his reasons for dismissal, he said that the variation of the service requirements “had not prejudiced [Warwick’s] interests”.
Warwick Ltd v GPS (Great Britain) Ltd Chancery Division (Mr Michael Furness QC, sitting as a deputy judge of the High Court) 18 October 2006.
Mark Wonnacott (instructed by Davenport Lyons) appeared for the claimant; John Male QC (instructed by Manches) appeared for the defendant.
References: EGi Legal News 19/10/06