DILAPIDATIONS REAL ESTATE LITIGATIONdilapidations claim and rent suspension issues. Defending a...

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Obligations relating to the state and condition of leasehold premises can often give rise to disputes between landlords and tenants, both during and at the end of the term of a lease. Tenants often have extensive obligations to keep the premises in a certain state and condition. A breach of those obligations can entitle a landlord to forfeit the lease, claim damages, seek an order requiring the tenant to perform its obligations or, in some cases, enter the premises, do the works and claim the cost from the tenant. Landlords can also be subject to obligations relating to the state and condition of the premises and/or common parts that serve the premises. These issues are commonly referred to as “dilapidations” and can have significant financial implications for those involved. DILAPIDATIONS REAL ESTATE LITIGATION

Transcript of DILAPIDATIONS REAL ESTATE LITIGATIONdilapidations claim and rent suspension issues. Defending a...

Page 1: DILAPIDATIONS REAL ESTATE LITIGATIONdilapidations claim and rent suspension issues. Defending a County Court dilapidations claim on behalf of a pro-bono charity client. We negotiated

Obligations relating to the state and condition of leasehold premises can often give rise to disputes

between landlords and tenants, both during and at the end of the term of a lease. Tenants often

have extensive obligations to keep the premises in a certain state and condition. A breach of those

obligations can entitle a landlord to forfeit the lease, claim damages, seek an order requiring the tenant

to perform its obligations or, in some cases, enter the premises, do the works and claim the cost

from the tenant. Landlords can also be subject to obligations relating to the state and condition of the

premises and/or common parts that serve the premises. These issues are commonly referred to as

“dilapidations” and can have significant financial implications for those involved.

DILAPIDATIONS REAL ESTATE LITIGATION

Page 2: DILAPIDATIONS REAL ESTATE LITIGATIONdilapidations claim and rent suspension issues. Defending a County Court dilapidations claim on behalf of a pro-bono charity client. We negotiated

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OUR SERVICES

DLA Piper’s Real Estate Litigation team regularly provides advice to both landlords and tenants in respect of dilapidations issues, more often than not achieving a negotiated solution to the dispute. However, if the matter needs to proceed to court, we have the expertise and experience to deal with claims of this nature. Areas we can help you with include:

■ Strategic advice and court proceedings relating to:

— Forfeiture

— Damages

— Injunctions

— Exercise of rights to enter to undertake works

■ Statutory restrictions on:

— Damages claims for terminal dilapidations

— Mid-term dilapidations claims in respect of long leases

■ Statutory duties owed by landlords to tenants of certain property classes

■ Alternative dispute resolution procedures:

— Negotiations

— Mediation

— Arbitration

If you are dealing with dilapidations issues or anticipate the need to so, please contact us to discuss how best to protect your interests.

OUR DILAPIDATIONS EXPERIENCE

■ Advising a major global publishing company in the successful extinguishment of its landlord’s £17 million dilapidations claim.

■ Acting for a client with a large property portfolio on a large number of high value terminal dilapidations claims ranging in value from £500,000 to £2.5 million. A number of the cases involved High Court proceedings.

■ Acting for a global media company in devising and implementing a successful exit strategy from disused warehouse premises that had been ransacked by trespassers. The matter involved a multi-million pound dilapidations claim and rent suspension issues.

■ Defending a County Court dilapidations claim on behalf of a pro-bono charity client. We negotiated a settlement which amounted to approximately 30% of the claim value.

■ Advising a landlord in respect of a High Court dilapidations claim in the region of £3 million which involved detailed consideration of statutory valuations, the consequences of a compulsory purchase order for the claim and redevelopment arguments. The matter was concluded at a one day mediation.

■ Acting for the an international packaging company in its successful defence of a County Court claim by its landlord for loss of rent after the parties had agreed terms for our client’s principal dilapidations liability.

■ Acting for the landlord in a successful High Court dilapidations claim involving loss of rent issues and the application of the statutory cap on damages.

■ Acting for a global media company in the successful settlement of its landlord’s multi-million pound High Court dilapidations claim at approximately 50% of the claim value.

■ Acting for a large Manchester landlord in a complex multi-million pound dilapidations claim which requires detailed consideration of statutory valuations and the concept of “multiple futures” for an office building.

KEY CONTACTS

Ian BrierleyPartner, London T +44 (0)20 7796 6232 [email protected]

Ben BarrisonLegal Director, London T +44 (0)20 7796 6184 [email protected]