Cases - Betty's Cafes Ltd v Phillips Furnishing Stores Ltd

Record details

Name
Betty's Cafes Ltd v Phillips Furnishing Stores Ltd
Date
[1957]; [1958]; [1959]
Citation
Ch 67; 1 AER 607; AC 20
Legislation
Keywords
Lease renewal
Summary

[1957]

Lease renewal - ground (f) – redevelopment

The landlord's motives are irrelevant if he can show that he has the necessary intention. This is so even if the motive is simply a desire to get rid of the tenant. However, the landlord's primary purpose may be relevant in trying to decide whether the intention expressed is in fact genuine or merely colourable.

The intention must exist at the date of the hearing of the application but need not have existed when the section 25 notice was given.

Lease renewal - length of new term

In deciding on the term, it is relevant to consider the length of the current tenancy, which was the reason given by the Court of Appeal for reducing the term on appeal from 14 years to 5 years. The Court of Appeal decision was upheld by the House of Lords.

[1958]

Lease renewal - ground (a) - failure to comply with obligations to repair and maintain

The Court of Appeal held that the judge, when considering whether ground (a) was established, was not confined to considering the state of the holding as at the date of the section 25 notice but should take into account the state of repair or disrepair of the holding as at the date the case before him to be decided.

Once the basic facts under ground (a) have been established, the court has discretion as to whether or not it should refuse a new tenancy.

[1959]

Lease renewal - ground (d) - alternative accommodation

Viscount Simonds stated that it would not be reasonable to reduce the time within which the landlord should have the opportunity of finding and offering alternative accommodation. This suggests that if the accommodation offered by the landlord has become unavailable, the landlord can use the time up until the hearing to find other suitable alternative accommodation and to revise his offer accordingly.

The alternative accommodation does not have to mirror exactly the existing accommodation. Accommodation on the second floor was suitable as an alternative to existing ground floor accommodation.

Lease renewal - ground (f) – redevelopment

The court accepted an undertaking from the landlord to carry out the proposed works.