In our previous Law-Now we discussed the decision in June this year of Mr Justice Fancourt in the unusual case of Monsolar IQ Ltd v Woden Park Ltd on the interpretation of an index linked rent review clause. The court found in favour of the tenant on the majority of its arguments and ordered that the effect of the wording in the lease was to provide for an upward or downward review in accordance with any proportionate change in RPI during the preceding year.
The solicitors for Woden Park and Monsolar subsequently asked for permission to raise additional arguments about the Judge’s interpretation of the rent review clause. The Judge considered those arguments, but saw no reason to change his decision.
An application has been made for permission to appeal to the Court of Appeal on the basis that the judge’s decision should be reversed on the grounds the parties’ intentions may have been for the relevant provisions of the lease to provide an upwards only review clause.
However for the moment, the cautious optimism of the original outcome continues and should give confidence to both landlords and tenants faced with similar situations that the court will take a commercial approach to these issues.