Lankester & Son Ltd v Rennie and another

Landlord and tenant – Assignment of lease. The defendants had leased premises from the claimant company. The defendants wished to leave the premises and assign the lease to a third party (TCA). TCA moved in to the premises and paid the rent. The defendants signed a deed of transfer and left it with their solicitor, who also acted for TCA. When TCA left the premises, the claimant sought payment of rent from the defendants and the defendants counterclaimed for a declaration was no longer vested in them following its assignment to TCA. The Recorder held that there had never been an effective assignment of the lease, that the claimant was not estopped from asserting that the defendants had remained its tenants and that the claimant was not precluded from asserting that the defendants were liable under the covenants contained in the lease. Further, he found that there the parties had never acted upon any common assumption that TCA had been assignee. The Court of Appeal, Civil Division, dismissed the defendants' appeal on the ground that, on the facts as found by the Recorder, his conclusions were unassailable.

Category: