Assignments, Not Getting Consent Can Be Very Costly

In the case of E.On v Gilesports [2012] EWHC 2172 (Ch), tenants were reminded of the harsh consequences of not following the procedure for seeking the landlord’s consent to an assignment and deciding to go through an assignment without consent.

Gilesports was the sub-tenant of a retail unit. The Original Shoe Company (“OSC”) moved into the unit under group sharing arrangements permitted under the lease. When OSC was subsequently sold, Gilesports sought to formally assign the lease to OSC.

After obtaining the head landlord’s consent, Gilesports’ solicitors emailed the immediate landlord requesting its consent to the assignment, which under the terms of the lease was not to be unreasonably withheld. Discussions then followed between the parties regarding the terms of the licence to assign. But four weeks later, before consent was formally granted, Gilesports and OSC completed the assignment. Negotiations continued regarding the licence until the landlord became aware that OSC