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ARTICLE · 28 FEBRUARY 2019

Brexit Not Enough To Frustrate A Lease

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The High Court has just handed down its eagerly awaited decision in Canary Wharf Limited v. European Medicines Agency [2019] EWHC 335 (Ch) ...

United KingdomReal Estate and Construction

The High Court has just handed down its eagerly awaited decision in Canary Wharf Limited v. European Medicines Agency [2019] EWHC 335 (Ch) confirming that Brexit will not frustrate (i.e. bring to a premature end) a lease.

Background

In 2017 the European Medicines Agency (EMA) wrote to its landlords, Canary Wharf Group, stating that having considered the position under English law, if Brexit occurred, it would consider that to be an event that would frustrate its lease. Canary Wharf Group subsequently brought proceedings seeking a declaration that Brexit would not amount to a frustration of the lease. The stakes were high as the rent payable under the lease is in the region of £13 million and the term does not expire until 2039.

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