Landlord and Tenant

Repairs covenant landlord to repair premises at tenants expense standard of works not to exceed what tenant reasonably expected to pay given tenants lesser interest in propertyFluor Daniel Properties Ltd and Others v Shortlands Investments Ltd: ChD (Blackburne J): 10 January 2001The defendant was the underlessee of office premises known as 3 Shortlands, Hammersmith, London W6, which were further sublet to various tenants including the claimants.Under the terms of the parties sub-underleases the landlord was obliged to keep the premises in good repair, although the tenant was expected to pay for the cost of the works through a service charge.

Following the completion of extensive works at the premises the claimants sought declarations that some of the work undertaken by the defendant were not repairs and therefore fell outside the scope of their obligation to reimburse the landlord for the cost of the repairs.Nicholas Dowding QC and Jonathan Karas (instructed by Beachcroft Wansboroughs) for the claimants; Jonathan Brock QC and Tim Fancourt (instructed by Lawrence Graham) for the defendant.Held, allowing the claim in part, that while the relevant clause extended to works which went beyond repairs, the relevant obligations in the lease nevertheless presuppose that the item in question suffered from some defect such that repair, amendment or renewal was reasonably necessary, having regard to the age, character and locality of the premises, to a reasonably-minded office tenant of the kind likely to take a lease of that building; that while the covenants were predominantly of benefit to the tenants the landlord also had an interest, separate from that of the tenants, in ensuring that the building was properly serviced so as to maintain the reputation and attractiveness of the building and to justify the high rent per square foot charged; that within reason it was for the landlord to choose how the works were to be carried out, and the tenant could not complain simply on the grounds that the landlord could have obtained the work and materials necessary for the completion of the works from other contractors and suppliers at a lower price; but that if the landlord wished to carry out repairs which went far beyond those for which the tenants, given their more limited interest, could fairly be expected to pay then, subject to the terms of the lease(s), the landlord must bear the additional cost himself.