Search

How can we help?

Icon

New case on damages paid to Tenant for Landlord’s breach of covenant

Those of you who attended our property seminar on 11 May 2016 heard about the circumstances in which a Tenant can recover damages from their Landlord where their Landlord has breached terms of the Lease.

The day after our seminar a new case Timothy Taylor Limited –v- Mayfair House Corporation and another was published and this gives further insight into how the Courts will compensate a Tenant whose occupation has been interfered with by its Landlord’s activities.

In the Timothy Taylor case the Tenant ran a high class art gallery from the basement and ground floor of premises in Carlos Place, Mayfair.  The Lease commenced in 2007 and, from 2013 onwards, the Landlord started very substantial works which, essentially¸ involved the complete rebuilding of the interior from the first-floor upwards to create a number of new apartments above the art gallery.  This generated ongoing building noise and at the same time the whole building was surrounded with scaffolding.

Unsurprisingly the Tenant complained about the serious interference with the use of its premises as an art gallery.  In the Lease the Landlord had reserved the right to erect scaffolding and to rebuild the building but the Lease also contained an obligation on the Landlord to give the Tenant quiet enjoyment.  The Judge found that the Landlord had exercised its rights unreasonably and in a way that substantially interfered with the use and enjoyment of the premises as an art gallery so that the Landlord had breached its obligation to provide quiet enjoyment.

The Tenant claimed damages based on loss of profits for the period of the works.

The Tenant claimed damages based on loss of profits for the period of the works.  The Court refused to award damages for loss of profits and instead compensated the Tenant by allowing a rent rebate of 20% from the date the scaffolding was erected up to the date of trial.  The Tenant also asked for an injunction to have the scaffolding taken down and noise restricted to a certain decibel level from the date of the trial.  However the Court refused to allow this since it took the view that it would be impractical.  Instead it awarded future compensation by way of a continuing 20% rent reduction up to the date of completion of the works.

This is a timely reminder for all Landlords exercising rights to carry out work that may impact on Tenants within the building that they run the risk of claims for damages and – in appropriate cases – an injunction if they do so in a way that unreasonably interferes with their Tenants’ rights of occupation.  One of the factors that marked out the Timothy Taylor case was a failure by the Landlord to consult in advance.

About this article

Disclaimer

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

About this article

Read, listen and watch our latest insights

art
  • 20 June 2025
  • Privacy and Data Protection

Data Protection reform receives Royal Assent: What is the Data (Use and Access) Act 2025 (DUAA) and what it means for your business

The UK’s data protection framework is about to undergo its most significant change since the UK GDPR came into force. After months of parliamentary debate, the Data (Use and Access) Act 2025 (‘DUAA’) has successfully received Royal Assent.

art
  • 18 June 2025
  • Employment

Pride Month: How Can You Celebrate as an Employer

The UK held its first Pride Parade in 1972, inspired by events held in major American cities following the Stonewall rebellion in New York in June 1969.

Pub
  • 16 June 2025
  • Privacy and Data Protection

WhatsApp in the workplace: Is it legally safe?

In this podcast, Lucy White and Monica Mastropasqua, members of the Data Protection team at Clarkslegal, will address frequently asked questions from clients regarding the use of WhatsApp at work.

art
  • 13 June 2025
  • Employment

Human Resources – A Shift Towards artificial intelligence?

On 6 May 2025, the SRA authorised the first law firm providing legal services through artificial intelligence. Garfield.Law will provide an AI-powered tool which can assist businesses with the small claims court process, to aid in recovering unpaid debts.

art
  • 11 June 2025
  • Employment

Employment Contracts and Specific Performance

‘Specific performance’ is a type of equitable remedy available, in some circumstances, and at the court’s discretion, for breach of contract; it entails an order by the court which legally compels a party to a contract to fulfil its contractual obligations.

art
  • 10 June 2025
  • Commercial Real Estate

Taking a commercial lease: The main points to negotiate when agreeing the Heads of Terms

What are the key areas tenants may want to pay particular attention to when agreeing to the Heads of Terms (HoTs).