ETS Vehicles Ltd v Fargate Developments Ltd
| Jurisdiction | Northern Ireland |
| Judgment Date | 01 January 1997 |
| Date | 01 January 1997 |
| Court | Court of Appeal (Northern Ireland) |
- Breach of covenant - Notice - Covenant in lease requiring lessee to commence building works within a period of 18 months from commencement of the lease - Lessee failing to honour covenant - Lessor's successor in title serving forfeiture notice on lessee - Notice not including requirement that breach to be remedied - Whether notice valid - Whether breach capable of being remedied - Conveyancing and Law of Property Act, 1881, s. 14 (1).
In 1987, ETS vehicles Ltd. (ETS) took a 999-year lease of a small plot of 1.25 acres of land owned by the Department of Economic Development in Northern Ireland (the department) undertaking 'within a period of 18 months (time being of the essence in this respect) from the date of commencement of the term to build and complete on the Premises all buildings and erections with all necessary services in accordance with plans and specifications thereof to be first approved by the Lessor in writing.' However, ETS commenced no such building work on the land. On 31 August, 1994, the land was assigned by the department to Fargate Developments Ltd. (Fargate). Fargate was aware that a number of lessees were in breach of similar building covenants and one of the attractions of this 'basket of properties' which it had acquired was the possibility of obtaining possession of various parcels of land which would be ripe for development. On 17 November, 1994, Fargate served on ETS a notice under the provisions of s. 14 of the Conveyancing and Law of Property Act, 1881, alleging that the building covenant had been broken, that the breach was incapable of remedy and stating that it was the intention of Fargate to re-enter upon the premises. ETS replied on 13 December, 1994, indicating that it would resist any attempt to re-enter and that it had always intended to develop the site in an appropriate manner in accordance with the terms of the lease. On 29 March, 1995, Campbell J. ruled that the lease was valid, subsisting and binding...
To continue reading
Request your trial
-
The Minister for Communications and Others v Figary Watersports Development Company Ltd
...& TENANT LAW 2ED 1998 PARAS 24.14 WYLIE & FARRELL LANDLORD & TENANT LAW 2ED 1998 PARAS 24.15 ETS VEHICLES LTD v FARGATE DEVELOPMENTS LTD 1997 NI 25 BANK OF IRELAND LTD v LISA LADY IRL LTD 1992 1 IR 404 1993 ILRM 235 1992/5/1414 LAW REFORM CMSN CONSULTATION PAPER ON GENERAL LAW OF LANDLORD......