Cases - Havenridge Ltd v Boston Dyers Ltd

Record details

Name
Havenridge Ltd v Boston Dyers Ltd
Date
(1994)
Citation
EGCS 53, CA
Legislation
Keywords
Commercial property – service charge – lease provided for tenant to pay sums which the landlord shall ‘properly expend of pay to any insurance company’ for insurance – whether the landlord was obliged to provide alternative cheaper quotes for insurance
Summary

A lease obliged tenants to pay sums which the landlord shall 'properly expend or pay to any insurance company in respect of ... insuring ... the demised premises'. The court held that 'properly' meant legitimately and that it was neither necessary nor clearly intended that there should be an implication of reasonableness. Provided the insurance was effected in accordance with the terms of the lease (i.e. placed with an insurer 'of repute'), the contract was negotiated at arm's length and the rate was representative of the market value, the landlord was not obliged to seek alternative cheaper quotes.