Cases - Concorde Graphics v Andromeda Investments Ltd SA

Record details

Name
Concorde Graphics v Andromeda Investments Ltd SA
Date
(1982)
Citation
265 EG 386, ChD
Legislation
Keywords
Commercial property – landlord and tenant – service charge – lease providing for a difference as to the contribution to be referred to the ‘landlord’s surveyor’ – final and binding decision – whether a difference as to the amount of contribution payable could be referred to the landlord’s surveyor
Summary

This concerned an industrial estate where the tenants were liable to contribute to expenses incurred in maintaining and repairing the common parts of the estate. After the appointment of new managing agents the amount of the service charge contributions demanded increased substantially. The leases contained aprovision that, in case of a 'difference' as to the contribution, the matter was to be settled 'by the landlord's surveyor', whose decision was to be 'final and binding' on the parties.

As the function of deciding a 'difference' as to the amount of tenant's contribution was essentially arbitral, it was held that the landlord's managing agents could not, in their capacity as the landlord's surveyors, make a 'final and binding' decision on such a 'difference'. The landlord would have to appoint other surveyors for that purpose.