Enforceability of covenants in 'old' leases - Person suing = benefit of the covenant & person being sued = burden of the covenant - Any escape for the first tenant who is forced to discharge the arrears of the third tenant?
3 important questions on Enforceability of covenants in 'old' leases - Person suing = benefit of the covenant & person being sued = burden of the covenant - Any escape for the first tenant who is forced to discharge the arrears of the third tenant?
Can the landlord sue the first tenant for the third, defaulting tenant's breach of covenant? How should the notice be served under (s. 17 Landlord and Tenant (Covenants) Act 1995)?
The landlord may sue the first tenant for the third tenant's breach. The notice must be served 6 months from the date the charge becomes due.
Can the first tenant bring proceedings against the second tenant under (s.77 LP(C)A 1995) if registered) or (Sch 12 para 20 LRA 2002) is unregistered)?
Decide whether the first tenant obtained an express covenant from the second tenant to indemnify him. If not, it can be implied (s.77 LP(C)A 1995 if registered) and (Sch 12, para 20 LRA 2002) if unregistered). If successful, the first tenant can recover their losses.
Can the first tenant directly sue the breaching third tenant under (Moule v Garrett). Is the first tenant likely to succeed if the third tenant is bankrupt?
The first tenant may recover the amount from the third tenant. However, if the third tenant is bankrupt, the first tenant is unlikely to succeed in recovering much.
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