The High Court ordered Edward Lee and Co. (1974) Limited to pay N1 Property Developments Limited €358,447 for occupying and trading from a Northside Shopping Centre unit after its 36-year lease expired. The order followed a supplemental judgment addressing the value of the occupation and the notice period that should have been given before the tenant left.
The dispute followed an earlier judgment in November 2012. That ruling granted the tenant equitable relief so that a late notice would prevent an automatic extension of the lease for another 36 years. It did not decide whether the tenant’s later occupation created a new tenancy or what it should pay while remaining in the premises. The tenant did not seek a new tenancy under the Landlord and Tenant (Amendment) Act 1980 and vacated on 9 December 2012.
The landlord argued that the tenant’s continued occupation had created a yearly tenancy requiring six months’ notice, and that the tenant owed sums under the lease. The court rejected the yearly-tenancy argument. It found the parties’ correspondence showed they disagreed about whether the lease had ended and about the sums due, rather than agreeing to continue on a yearly basis.
The court held that the landlord was nonetheless entitled to reasonable payment for the tenant’s use of the premises. It assessed the reasonable period of notice at six months, taking account of the long lease and the time a landlord would need to find a replacement tenant. It ordered payment of open-market rent for the two years the tenant occupied and traded from the unit, plus six months’ rent in lieu of notice. Other charges were payable during the occupation period; the court did not consider charges beyond rent payable for the notice period when the tenant was no longer in occupation.
In assessing the rent, the judge preferred the landlord’s valuer, describing that evidence as more objective and based on long experience of the shopping centre. The court set an averaged annual rent of €200,000, allowing for an initial rent-free period in the market assessment. It also rejected the tenant’s evidence that the shopping centre was “on its knees”.
After setting off a payment made by the tenant in November 2011, the court said the agreed calculation produced €358,447 due. It entered a decree for that amount in favour of the landlord.