Dunraven Securities Ltd v Holloway [1982] 2 EGLR 47
Also reported: (1982) 264 EG 709.
Court of Appeal — landlord and tenant, breach of covenant and forfeiture
Facts
The case involved a 150-year lease of a property between landlord and tenant, with the property being a retail store. The agreement was that the tenant would pay a peppercorn rent, an insurance premium and a service charge which was calculated by another schedule within the agreement. The tenant also covenanted not to undertake or permit illegal activity on the premises. The tenant later opened up a sex shop in the retail space he had leased and was placed under a confiscation order as per the Obscene Publications Act 1959. The landlord obtained a possession order on the ground that the tenant had breached the covenant. The tenant appealed.
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Issue
The issues were whether the tenant’s use of the premises breached the covenant, whether the breach was capable of remedy, and whether relief from forfeiture should be granted.
Decision/Outcome
The Court of Appeal dismissed the tenant’s appeal. It held that there had been an illegal act in breach of the covenant and that the breach in this case was not capable of remedy. The court upheld the trial judge’s refusal of relief from forfeiture.
