LEGAL
By Paul Rooke, Solicitor Mayo Wynne Baxter
COVID CLOSURES In the recent case of London Trocadero (2015) LLP v Picturehouse Cinemas Ltd it was held that the landlord was entitled to judgment for rent and service charges despite the fact that the premises could not be used due to the restrictions imposed because of the pandemic. The tenant had agreed to keep the premises open for trading during certain minimum trading hours and had covenanted to comply with legislation. In March 2020 the tenant was forced to close due to the restrictions imposed during the pandemic and no rent was paid from June 2020. The landlord gave no warranty that the premises could be used for the use as set out in the lease and brought proceedings for recovery of the unpaid rent and service charges.
The Government has proposed legislation for mandatory arbitration for rent arrears incurred during the pandemic. Once introduced it is intended that rent arrears incurred during the pandemic will be ringfenced ❜❜
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