Marks & Spencer has lost a case in the Court of Appeal that would have seen it recoup £1.1m in rent paid after a break date.
The Court of Appeal has overturned a High Court decision that ruled a term should be implied into leases to allow M&S to recover rent paid at former offices in Paddington after a break date.
M&S served break notices on July 7 2011 to end the leases on the break date January 24 2012. It then paid the quarterly rent that fell on December 25 2011, even though the leases were to terminate a month later. The retailer claimed that it was entitled to a refund of £1.1m in rent paid between January 24 2012 - the break date- and March 24 2012, the end of the first quarter.
In September last year the High Court ruled that a term should be included in the contracts in order to give “business efficacy” to the leases.
The landlord BNP Paribas Securities Services Trust Company appealed against the decision.
In the Court of Appeal today (Wednesday) Lady Justice Arden found in favour of the landlord. In her view the leases would not “reasonably be understood to include such an implied term”.