First Scottish Case Allowing Lease Termination For Dilapidations

A three-judge appeal court in Edinburgh has issued an important commercial leasing decision on landlords’ options to terminate leases. At issue were two competing rights: the right of a landlord to terminate by irritancy (forfeiture) based on the tenant’s failure to keep the property in good condition; versus the right of a tenant to put matters right and be allowed to stay on. The court decided that once the landlord had terminated the lease, there was no going back for the tenant even if subsequently remedying the breach.

The Facts

Mr and Mrs Maris were in partnership as hoteliers of the Tor-na-Coille Hotel, Banchory. The hotel buildings and grounds were partnership property.