Landlord and tenant update - repudiation of leases by Examiners

Monday, 21 December 2009

Both landlords and tenants will be interested in a recent decision of the Supreme Court, overruling an earlier decision of the High Court.  It concerns 5 properties held on lease by the Linen Supply of Ireland to which an Examiner was appointed.  The High Court refused to allow the Examiner to repudiate the 5 leases but the Supreme Court allowed the Examiner to do so on the basis that leases are contracts within the meaning of the relevant legislation and can, accordingly, be repudiated by the Examiner. The decision is likely to encourage landlords to enter into negotiations with companies in examinership at an early stage with a view to avoiding their leases being repudiated and finding a mutually satisfactory outcome. 

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