A recent court case does not tell us anything new but provides an interesting reminder of the importance of not losing sight of the legalities when carrying out work to property.
The case also attracted interest because the tenant's premises were an expensive modern art gallery in Mayfair, London.
The tenant had a lease of ground floor and basement premises in London. Since 2013, the landlord had been carrying out major work to the rest of the building. The tenant accepted that this would have some impact on the 'use and enjoyment' of his premises. However as the works progressed, the landlord's work had a greater impact. The tenant made a claim against the landlord saying that the work was unreasonable and the tenant claimed for damages and an injunction to regulate future work.
An interesting aspect of this case is that the landlord had paid £50,000 to a neighboring gallery as compensation for the erection of scaffolding on their premises. No such payment was made to the tenant in this case. He requested a payment but the landlord refused. The tenant installed machinery to monitor the noise levels of the work. The landlord also claimed the right to enter the tenant's premises to carry out work which necessitated closure of the tenant's gallery for four weeks.
The facts of the case were complex. The Judge held that the tenant was entitled to a reduction in his rent but not an injunction. One of the factors against the award of an injunction was that the case had taken some two years to conclude and at the time of the award, the landlord only had 12 weeks of work left to do.
The important issues arising from this case is not the decision but some of the lessons to be learned from it.
The Court found that:
- The landlord did not discuss the work with the tenant at the outset and did not try to identify how to minimise the disruption to the tenant
- The landlord and the tenant did not discuss the likely timeframe for completion of the landlord's work
- The work was for the landlord's profit; not to repair the premises for the tenant
- The use of the premises as a high class art gallery was relevant
- The landlord did not instruct the scaffolding company to consider the effect of the scaffolding on the tenant
The case highlights the importance of landlord and tenants talking to their legal advisers before any works are started. This is particularly important if the work planned is likely to be disruptive or long lasting.
In addition, it is always worth considering what payments a landlord proposes to make to tenants to secure an agreement. It is clear from this case that a landlord does not have to make the same payments to all tenants. This is another issue which your solicitor can try to negotiate for you, but you must ensure that you obtain advice before you agree to anything.
Many people do not think to see their lawyer until there is a problem. This case is a salutary reminder of the importance of taking practical legal advice at the outset to try to avoid the problem in the first place.
Case: Timothy Taylor Ltd v Mayfair House Corporation and another [2016] EWHC 1075 (Ch)
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