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ARTICLE · 27 APRIL 2012

Cornwall Clots The Landlord’s Cream

Charles Russell Speechlys LLP
Charles Russell Speechlys LLP
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Charles Russell Speechlys LLP

Charles Russell Speechlys LLP

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In a case handled by Charles Russell LLP, in which we acted for Charles Terence Estates Limited ("CTE"), Cornwall Council has walked away from 30 leases pleading its own ineptitude and incompetence as its main defence.

United KingdomReal Estate and Construction

In a case handled by Charles Russell LLP, in which we acted for Charles Terence Estates Limited ("CTE"), Cornwall Council has walked away from 30 leases pleading its own ineptitude and incompetence as its main defence. Its landlord, CTE has been left seeking relief in the Court of Appeal in a case which, in the words of Mr Justice Cranston

"raises some novel issues concerning contracts with governmental and public authorities".

In outline, in 2005 CTE was approached by two district councils in Cornwall (Penwith and Restormel) and was asked to purchase houses which the councils could use to house vulnerable homeless people. As a consequence, CTE purchased some 30 houses between 2005 and 2008 and let them to the councils. CTE also entered into substantial financial commitments to provide the scheme. Cranston J has now rated that the leases are void. A harsh decision (even in the Judge's eyes) Cranston J said

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