Real Estate Litigation

All Run Down: Modern Day Dilapidations

May 13th 2020

Virtual Seminar

Modern Day Dilapidations in a Commercial Lease

May 13th 2020

2 - 5pm

Speaker: Matthew Farrell

Virtual Seminar

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£135+VAT (Member price)

3hrs CPD

When the recession hit in 2008, tenants became few and far between. Landlords were suddenly facing the prospect of a lengthy void period, meaning no income and various liabilities. They had to get money from somewhere.

Dilapidations was an obvious source. Landlords started enforcing their dilapidations claims hard. On the other side of the fence, tenants had no money and so they started to defend the claims just as hard as they were pursued. This has led to a number of significant cases on dilapidations in the last nine years and, more importantly, an attitude change towards dilapidations claims in Scotland. Most recently, disputes have started to come through the courts relating to payment obligations for dilapidations. This has resulted in these obligations appearing more frequently in new leases.

Our expert, Matthew Farrell, is a partner in Brodies real estate litigation team, with a particular specialism in dilapidations. He acted for the tenant in both Grove v Cape and @SIPP v Insight, and he lectures on the topic to building surveyors at Glasgow Caledonian University. He will be joined by Joe Madden, partner in PMP building consultancy, who will give a building surveyor’s perspective on how dilapidations clauses in leases are viewed from a practical point of view.

Matthew will discuss the following important considerations for any practitioner that deals with dilapidations, whether when negotiating a commercial lease or litigating a dilapidations claim

  • The common law implied terms and how to deal with them
  • The repairing standard in its different guises
  • Extraordinary repairs
  • The role of the interim schedule of dilapidation
  • The relationship between the lease and licences for works and the importance of giving proper notice
  • Payment clauses and their effect; and
  • Diminution in value and its place in Scotland
  • You will come away from the session with an understanding of how to revise a commercial lease to put your client in the best position with regards to dilapidations, and with an awareness of the arguments available to you if you are involved in a dispute over dilapidations.

    The event begins at 2pm. Delegate registration is open from 1:30pm.

    Matthew deals with complex and high value real estate disputes for a wide variety of clients, from property funds and corporate occupiers to developers and public bodies. He is especially well known for top end dilapidations disputes, having acted in the leading cases of Grove Investments Limited v Cape Building Products Limited and @SIPP Pension Trustee Limited v Insight Travel Services Limited. He also lectures on dilapidations at Glasgow Caledonian University.