Tyco Fire & Integrated Solutions (UK) Limited v. Regent Quay Development Company Limited - June 2016

Tyco Fire & Integrated Solutions (UK) Limited v. Regent Quay Development Company Limited - June 2016

Validity of notice exercising break option in lease

The Landlord, Regent Quay, owned commercial premises known as the Glover Pavilion in Aberdeen Science and Technology Park. It granted a lease of Units 3 and 4 to Tyco for a 10 year period expiring on 5 February 2014. The parties subsequently agreed to vary the terms of the lease to include Unit 1, extending the term of the lease until August 2021 and including a break option exercisable by the tenant after 5 years.

On 11 January 2016, the Tenant served a notice on the Landlord exercising the break option. The heading of the letter containing the notice in error only referred to Units 3 and 4 and not to Unit 1, and defined this as “the Premises”. 

The Landlord argued that the notice was invalid.

Lord Tyre rejected the Landlord arguments and declared that the notice had been validly served.

The case highlights that a Landlord will not automatically be successful in challenging the validity of a break notice on the basis of a clerical error where the intention of the notice is clear. 

This case is being appealed.

The case does highlight that a Landlord will not automatically be successful in challenging the validity of a break notice on the basis of a clerical error where the intention of the notice is clear – however it does serve as a reminder of the importance of accuracy when serving notices under leases.