Court of Appeal supports landlord in M&S rent apportionment case - DAC Beachcroft

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Court of Appeal supports landlord in M&S rent apportionment case

Published 15 May 2014

Landlords will welcome yesterday's Court of Appeal decision in the case of Marks and Spencer Plc v BNP Paribas Securities which concerns break clauses and rent apportionment.

M&S occupied office accommodation in Paddington on four identical leases, all with tenant break rights. The requisite break notices were duly served, the conditions satisfied (including that there were no rent arrears, and that a substantial premium was paid) and the breaks were effective. The argument that took this matter to the Court of Appeal concerned the rent. The break date was in January rather than on a quarter day, so when the break occurred M&S had already paid rent for the full quarter. The landlord refused to repay apportioned rent (and indeed insurance premium and car parking charges) for the period from the break date in January to the end of the quarter.

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