Leading bookseller Waterstones is suing solicitor Dechert for damages of more than £100,000 in a dispute over the tenancy of a shop in Northampton.
According to a claim that has just been made publicly available, Decherts negligently failed to serve documents in time, which meant that Waterstone’s lost both its security of tenure and its right to renew the lease of premises at 19 and 21 Abington Street, Northampton.
The original lease was due to expire on 25 March 2002, and the landlord, Prudential Assurance, served notices terminating the tenancy and indicating that it would not object to a new tenancy.
It is alleged that Waterstone’s retained Dechert to act for it in respect of the lease, and the firm served a counternotice, under the Landlord and Tenant Act 1954, stating that Waterstone’s was not willing to give up possession of the property. It also issued an application for a new tenancy.
But the claim says that, in breach of contract, the firm negligently failed to serve the claim form on the landlord within two months of issue, and failed to advise Waterstone’s of the need to serve the form in time.
As a result, Waterstone’s says that its application to renew its tenancy was struck out. Although the company was able to negotiate a new lease, the rent was increased by £21,400 pa.
The claim maintains that the terms of the new lease are more onerous than a renewed lease would have been, and that this, combined with the higher rent, will make it more different for Waterstone’s to assign or underlet the property if it should wish to do so in future.
Dechert allegedly wrote on 7 November 2002 admitting liability for the loss of the bookseller’s right to renew the lease.
References: PLS News 28/3/03
