Landlords Succeed In Landmark Case

Further to my article last week, we have today learned that the Court of Appeal has found in favour of landlords in the much anticipated case of Jervis & Others v Pillar Denton and Others (the Game administration).

To recap: Game entered administration one day after its quarter rent date fell due in March 2012 and its administrators relied on previous case law (Goldacre and Luminar) that they were not liable to pay sums that fell due (rent and service charges) prior to their appointment, as an administration expense. The landlords would have to prove for those sums in the usual way as unsecured creditors.

The landlords challenged this and today succeeded. Accordingly, we will now be dealing with a 'pay as you go' scenario in which, if the administrators are using the leasehold premises for the purposes of the administration, rent and service charges will be payable as an administration expense for the period in which they are in occupation.