Cases - Glofield Properties Ltd v Morley (No. 2)

Record details

Name

Glofield Properties Ltd v Morley (No. 2)

Date

(1989)

Citation

2 EGLR 118, CA

Legislation

Arbitration Act 1979

Keywords

Commercial property – landlord and tenant – rent review – open market rental value – date of determination of the rent review – whether the lease required the rent to be assessed at the date of the arbitration or the review date

Summary

The rent review clause defined the 'open market rental value' as 'a sum ... determined in manner hereinafter provided as being at the time of such determination the annual rental value of the demised premises in the open market ...'. The landlord argued that the words 'at the time of such determination' required the rent to be assessed at the date of the arbitration instead of the review date, but the tenant successfully argued that the commercial purpose of the rent review clause was to have the rent fixed by reference to values prevailing at the start of the period from which the new rent was payable, namely the review date.