High Court dismisses proceedings brought by a landlord seeking judgment in the sum of €189,736.80 in respect of rent, insurance, interest and service charges, on the grounds that the tenant had surrendered his tenancy with the encouragment and acceptance of the landlord’s predecessor in title.
Summary summons – landlord claimed judgment for monies due in respect of rent, insurance, interest and service charges commencing - €189,736.80 claimed to be due and owing – defence filed – tenant claimed that he assigned the lease with consent of the landlord’s predecessor in title – third party joined – whether the assignment was valid - s. 7 of Deasy’s Act – notice of change of landlord – arrears of rent – tenant pursued – unaware of any assignment – tenant permitted to amend defence – claim that there had been a surrender of his tenancy by act or operation of law in accordance with s. 7 of Deasy’s Act 1860 rather than an assignment as originally pleaded - court was also concerned as to how the plaintiff came to acquire its predecessor’s interest without any notice of an arrangement - “due diligence” process prior to acquiring title – sublease agreement – option to take an assignment of tenant’s unexpired term not exercised - court accepts that this transaction was not any form of surrender – requisitions on title – occupation of the premises – reality that another company was the tenant – whether the tenant assigned rather than surrendered his interest – no notification of assignment or surrender – short term letting agreement - proof that the tenant could not have alienated his interest by assignment or surrender - law in relation to surrender – deed executed in writing - court must look at conduct pointing unequivocally to termination of the tenancy in question - conduct of both parties – surrender cannot be brought about unilaterally - circumstances in which the tenant disengaged from his tenancy - landlord bound by the actions of its predecessor in title – Court determined that it would be an injustice to permit the landlord to deny that there was a mutually understood arrangement between the tenant and the landlord’s predecessor in title whereby the defendant would depart the premises and his premises would be occupied by another company on a short-term letting with an option to take an assignment of the tenant’s unexpired term – tenant has not paid rent – predecessor in title facilitated the departure – tenant adopted a position inconsistent with his position as tenant.