25/03/2013

High Court Rules On Bewley's Rent Reduction

The rent payable by Bewley's Oriental Café in Grafton Street, Dublin must be allowed to fall in line with the currently depressed open market rate, a High Court judge has ruled.

Landlord Ickendal Limited, owned by Johnny Ronan's Treasury Holdings Group, claimed they were entitled to a five-yearly upwards only rent review.

In his ruling Mr Justice Peter Charleton had said that to proceed towards ever-increasing sums in rent every five years, while deflation had decreased, was to substitute an unreal figure for the rent.

It is understood that within the lease agreement between Bewley's and Ickendel stipulates that the rent was never to fall below the initial agreement of 1987.

However, Judge Charleton said an open market clause in the agreement could only reasonably be construed so as to allow for a fall in rent which had increased to €1.5m because of upwards only reviews since 1987.

Adding that the parties had the opportunity to insert a clause explicitly stating that the rent could not fall below what had been agreed at the previous review but that they had not done so.

It is thought that the decision of Mr Justice Charleton could have huge repercussions for landlords who have been claiming upwards only reviews and is expected to be widely welcomed by hard pressed shop tenants.

(H)




Related Irish News Stories
Click here for the latest headlines.

03 December 2015
Govt Passes Rent Reform Bill
Ireland's Residential Tenancies Bill has passed all stages of the Dáil and Seanad, it has been announced. The Bill is now expected to be signed into law by the president as soon as possible. The Bill will bring a number of major reforms to the private rental sector in Ireland, providing rent certainty and safeguards for both tenants and landlords.
10 January 2023
EU/UK Agreement On Trade Data Welcomed
Alliance Deputy Leader Stephen Farry MP has welcomed an agreement on trade data sharing between the EU and the UK, saying that "trust is the key ingredient in finding a sustainable and mutually agreed way forward around the Northern Ireland Protocol".
19 December 2019
Latest Crime Statistics Show 33% Fall In Homicide Offences
Homicide offences have fallen 33% in the third quarter of 2019, according to the latest Crime Statistics by the Central Statistics Office (CSO). The decrease is said to be in part due to a significant reduction in instances of dangerous driving leading to death; and in part due to a decrease of 17% in instances of murder.
18 November 2015
Govt's Housing Record A 'Spectacular Failure' - SF
The government's record on housing has been described as a "spectacular failure", dependent on the private market to provide a solution that "will never come". Sinn Féin housing spokesperson, Dessie Ellis, made the comments during a Private Members debate in the Dáil.
29 June 2016
Cabinet Agrees To Increase Rent Limits
The Cabinet has agreed to increase rent limits under the Rent Supplement and Housing Assistance Payment (HAP) schemes, Minister for Social Protection Leo Varadkar and Minister for Housing, Planning & Local Government Simon Coveney have announced.