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Tenant’s breach of lease terms results in liability for unpaid rent and interest
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High Court, in circumstances where a tenant failed to comply with specific conditions of abatement agreements and the Lease terms, determines that the tenant is consequent liability for unpaid rent. The tenant breached the Lease by carrying out significant alterations without prior consent, using more space for alcohol sales than permitted, and failing to pay service charges on time following written demands. As a result, the tenant is now obligated to pay the full rent that was initially reduced under the abatement agreements, amounting to €200,791.78, along with interest calculated from the date of the plaintiff's statement of claim. The court found no basis for the tenant's claims of estoppel or waiver by the landlord. However, the Lease's interest provision was deemed a penalty clause and unenforceable, with the Courts Act rate of 2% interest to be applied instead.
- Tenant - Landlord - Abatement agreements - Lease - Breach of covenant - Alterations without consent - Restrictive user covenant - Service charges - Written demand - Void ab initio (void from the beginning) - Estoppel - Waiver - Penalty clause - Interest rate - Courts Act rate - Unpaid rent - Commercial Lease
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