{"id":5502,"date":"2018-10-12T12:38:31","date_gmt":"2018-10-12T12:38:31","guid":{"rendered":""},"modified":"2019-06-17T17:03:13","modified_gmt":"2019-06-17T17:03:13","slug":"pw-and-co-v-milton-gate-investments","status":"publish","type":"post","link":"https:\/\/www.lawteacher.net\/cases\/pw-and-co-v-milton-gate-investments.php","title":{"rendered":"PW & Co v Milton Gate Investments Ltd"},"content":{"rendered":"

PW & Co v Milton Gate Investments Ltd [2003] EWHC 1994 (Ch)<\/strong><\/p>\n

LANDLORD AND TENANT \u2013 SUB-LEASES DETERMINED ON TERMINATION OF THE HEAD-LEASE<\/strong><\/p>\n

Facts<\/h3>\n

The claimant held the head-tenant of the defendant\u2019s building and sub-leased the property to several other parties. When all the relevant leases were created, all parties involved thought the law was such that if the head-tenant ended their lease, the sub-leases would remain valid and enforceable. The law was later clarified in a case which held that the opposite was true: the sub-leases would end on determination of the head-lease. The claimant ended the head-lease, and relied on a clause in the lease which allowed them to escape a penalty-fee if the building remained sublet.<\/p>\n

Issues<\/h3>\n

The claimant would not be able to rely on the escape-clause if the sub-leases terminated on termination of the head-lease, as then it could not be said that the building remained sub-let in the manner specified in the head-lease agreement. The issue in this case was whether it was possible to \u2018contract out\u2019 of the usual consequences of ending the head-lease, such that the sub-leases continued.<\/p>\n

Decision\/Outcome<\/h3>\n

The court held against the claimant.<\/p>\n

The court held that on the proper interpretation of the contracts in this case, the parties had purported to contract such that sub-leases would continue to exist after the determination of the head-lease. However, the court held that such a term would be invalid. It held that termination of the head-lease would always lead to the termination of the sub-leases unless the termination of the head-lease arose out of a consensual arrangement between the landlord and head-tenant other than as provided for by the head-lease.<\/p>\n

For this reason, the sub-leases had determined when the head-lease did, and the claimant was liable to pay the penalty.<\/p>\n","protected":false},"excerpt":{"rendered":"

The claimant held the head-tenant of the defendant’s building and sub-leased the property to several other parties.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[85],"class_list":["post-5502","post","type-post","status-publish","format-standard","hentry","category-cases","tag-uk-law"],"yoast_head":"\nPW & Co v Milton Gate Investments Ltd | LawTeacher.net<\/title>\n<meta name=\"description\" content=\"The claimant held the head-tenant of the defendant's building and sub-leased the property to several other parties.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lawteacher.net\/cases\/pw-and-co-v-milton-gate-investments.php\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" 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