News

Ballymore Millharbour sued for return of Pan Peninsula deposit

News

Jess Harold

12 January 2011

Residential

Eurostaff is suing Millharbour, claiming that a purported agreement for lease of Flat 2701 of the development is not valid or binding upon it.

Eurostaff says Ballymore Millharbour was assigned the vendor’s interest in the purported agreement for lease by Bantra in March 2009, as one of a number of agreements to lease relating to the development which had been entered into by Bantra.

Eurostaff was assigned the lessor’s interest in the purported agreement for lease by Ronadam Property and Investment in October 2007, for which it paid Ronadam £66,200 to cover the first tranche of a deposit Ronadam had paid. It then paid a further £68,200 to Bantra as the second tranche of the deposit.

However, it now claims that it was unaware at the time that the contracts earlier exchanged by Bantra and Ronadam on 7 July 2006 had differed in a key respect – the deadline date by which the Pan Peninsula development had to be completed.

It says that it believed that, under clause 15 of the purported agreement for lease, it was entitled to give notice rescinding it if the development was not complete by 31 December 2008.

However, when it sought to do so, Ballymore Millharbour’s solicitors argued that the true completion date triggering the right to rescind was 31 December 2011. This date was recorded in the version of the contract prepared by Ronadam, but the earlier date was recorded on the face of the contract prepared by Bantra.

Eurostaff argues now that the failure by Ronadam and Bantra to exchange identical contracts meant that no valid and binding agreement was reached between them, and that it is entitled to walk away from the deal and have its £134,400 deposit payment returned.

Ballymore Millharbour is defending the claim.

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Eurostaff Group is seeking a High Court declaration that it is not under any obligation to complete a long lease of a flat in the Pan Peninsula development in London’s docklands, and an order forcing freehold owner Ballymore Millharbour to return a £134,400 deposit. Eurostaff is suing Millharbour, claiming that a purported agreement for lease of Flat 2701 of the development is not valid or binding upon it. Eurostaff says Ballymore Millharbour was assigned the vendor’s interest in the purported agreement for lease by Bantra in March 2009, as one of a number of agreements to lease relating to the development which had been entered into by Bantra. Eurostaff was assigned the lessor’s interest in the purported agreement for lease by Ronadam Property and Investment in October 2007, for which it paid Ronadam £66,200 to cover the first tranche of a deposit Ronadam had paid. It then paid a further £68,200 to Bantra as the second tranche of the deposit. However, it now claims that it was unaware at the time that the contracts earlier exchanged by Bantra and Ronadam on 7 July 2006 had differed in a key respect – the deadline date by which the Pan Peninsula development had to be completed. It says that it believed that, under clause 15 of the purported agreement for lease, it was entitled to give notice rescinding it if the development was not complete by 31 December 2008. However, when it sought to do so, Ballymore Millharbour’s solicitors argued that the true completion date triggering the right to rescind was 31 December 2011. This date was recorded in the version of the contract prepared by Ronadam, but the earlier date was recorded on the face of the contract prepared by Bantra. Eurostaff argues now that the failure by Ronadam and Bantra to exchange identical contracts meant that no valid and binding agreement was reached between them, and that it is entitled to walk away from the deal and have its £134,400 deposit payment returned. Ballymore Millharbour is defending the claim. To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.