The London borough of Hackney and Transport for London are involved in a complex £6m legal dispute over rent payable for use of the arches of the Kingsland Viaduct, E2.
The case is being brought by Rail for London Limited, a subsidiary company owned by TfL and a successor company to London Underground Limited.
It relates to a 99-year-and-one-day lease signed in 1994 between Hackney Council, the owner of the 2-mile long viaduct, and London Underground.
A complicated series of leases and sub-leases followed, according to a ruling handed down this week. There was also an equally complicated rent structure. The effect was that three TfL-owned companies became the freeholders of the viaduct, parts of which were leased back to Hackney. The council then leased part of the viaduct back to a TfL-owned company.
Then, in 2003, Hackney surrendered one of the sub-leases for almost £8,000, making TfL-owned Rail for London the tenant.
Rail for London continued to pay rent to Hackney. However, in 2019, it stopped paying, arguing that the surrender of the lease meant that rent wasn’t due. It issued legal proceedings in March last year seeking £6m in what it considers to be overpaid rent.
According to the ruling, Hackney countersued, claiming it was due rent payments from 2019 onwards.
In a preliminary skirmish in February, Rail for London sought to have part of Hackney’s defence struck out.However, in a ruling this week, a High Court judge refused.
The case is due to go to trial in October.
Rail for London Limited v The London Borough of Hackney
Business and Property Courts (Jonathan Hilliard QC) 9 May 2022
