Second Judgment in favour of Landlords on Commercial Rent Arrear dispute involving Covid-19 issues
On 16 April 2021, Chief Master Marsh in Commerz Real Investmentgesellschaft mbH v TFS Stores Ltd ordered in favour for the landlord during the first judgment on commercial rent arrears dispute involving Covid-19 issues. Under a week later, on 22 April, we already have another judgment from Master Dagnall who has also found in favour of landlords in the case of Bank of New York Mellon (International) Ltd and another v Cine-UK Ltd and others.
This case involved claims for rent arrears owing to two different landlords which were opposed by tenants on a number of grounds, all of which were rejected by Master Dagnall. The tenants in this case were Cine-UK Ltd, Mecca Bingo Ltd, SportsDirect Ltd, and Deltic, a nightclub operator. These tenants had been unable to trade, to various degrees, during the Government imposed lockdowns.
In this case, the tenants employed every possible Covid argument to justify non-payment of rent and each one was resoundingly rejected by the Courts. This should provide some comfort to landlords in their rent collection endeavours going forward.
The full judgment can be found here.