The landlord at one of the Financial Times former London offices has been given permission to appeal a High Court decision that the FT can exercise a lease break.
Fitzroy House, a holding company set up by US investor Lionsgate Properties, is challenging a ruling that the publisher was entitled to terminate a lease of Castle House in Paul Street, London EC2, in April 2004, thereby avoiding more than £3.5m in rent.
The landlord claims that the FT did not comply with repairing covenants and that the building has required further repairs amounting to around £20,000.
In November 2005, Judge Thornton QC ruled that the FT had satisfied its obligations by spending £1m on repairs at the 20,000 sq ft building. He said that Fitzroy was trying to “catch the FT out on a technicality” because the letting market was “so soft”.
In 1994, the FT was granted a 16-year lease by Fitzroy’s predecessor, United Newspapers Publications. It is now based in offices at One Southwark Bridge, London SE1.
Solicitor Kanter Jules is acting in the dispute for Fitzroy, while Birmingham-based law firm Wragge & Co is representing the FT.
Fitzroy House Epworth Street (No 1) Ltd and another v Financial Times Ltd Technology and Construction Court (Judge Anthony Thornton QC) 4 November 2005.
Mark Warwick (instructed by Kanter Jules) appeared for the claimants; Paul Morgan QC (instructed by Wragge & Co, of Birmingham) appeared for the defendant.
References: EGi Legal News 09/12/05
