Property Dispute

Client: Retail company

Issue:The dispute arose after a real estate developer bought factory premises from our client. The premises contained heavy plant, which could not be removed in time for completion of the sale of the property. The contract for the sale of the factory included a lease relating to part of the premises, granted by the developer to allow adequate time for removal of the plant.

Removal of the plant took longer than expected. Our clients needed to extend their stay in the property but wanted to avoid paying rent. Issues arose as to interpretation of the contract. 

Weightmans’ Investigation and Action: The developer’s view was that rent was due in respect of our client’s continuing occupation of the premises, and he sought relief by forfeiture.  We argued that the term of the lease had expired and that, under the terms of the agreement, our client was entitled to occupy the property as licensees free of charge.

We advised our client to mediate, and persuaded the developer’s solicitors to participate. 

Result: After a full day’s mediation at our offices, a complex agreement was made which allowed our client sufficient time to exit at nominal cost.  Both parties paid their own costs and our client avoided what could have been lengthy and costly litigation.