Gregarious Limited v Westgroup Investment Limited
[2024] EWHC 748 (Ch)
Martin’s Commercial Limited v Cineworld Cinemas Holdings Limited
26 July 2023
[2023] EWHC 1925 (Ch)
High Court
A landlord sued a tenant for unpaid rent before a new law was passed helping tenants during the pandemic. The new law allows for arbitration to reduce or cancel rent. The court said the new law applies even though the lawsuit started earlier, and it ordered a pause in the lawsuit while the arbitration happens, making sure the tenant gets a fair chance.
Key Facts
- •Martin's Commercial Limited (Claimant) is the freehold owner of a property leased to Cineworld Cinemas Limited (Tenant).
- •Cineworld's guarantor, Cineworld Cinemas Holdings Limited (Defendant), is also involved in the case.
- •Proceedings were commenced on 13 August 2021 for rent arrears exceeding £1.09m.
- •The Commercial Rent (Coronavirus) Act 2022 (the Act) was passed on 24 March 2022.
- •The Act provides for arbitration to resolve relief from payment of protected rent debts (PRDs).
- •The Tenant referred the matter to arbitration under s.9 of the Act.
- •The key issue is whether the Act applies retrospectively to proceedings commenced before 10 November 2021.
Legal Principles
Statutes should not be construed as depriving a party of accrued rights retrospectively unless that is the clear intention.
Hutchinson v Jauncey [1950] 1 KB 574
The court should construe the Act fairly, avoiding interpretations that extend rights beyond Parliament's intention.
Hosebay Ltd v Day [2012] 1 WLR 2884
Where there is a right, the law will provide a remedy (ubi jus, ibi remedium).
Common Law Principle
Parliamentary material (Hansard) can be used to aid construction of legislation that is ambiguous or leads to absurdity.
Pepper v Hart [1993] AC 593
Outcomes
The appeal was dismissed.
The Act alters substantive rights and duties retrospectively, allowing arbitration even for proceedings commenced before 10 November 2021. While s.23 and Schedule 2 provide a statutory moratorium only for proceedings commenced after that date, the court's inherent jurisdiction can be used to stay proceedings pending arbitration to prevent the tenant from being deprived of their substantive rights under the Act.
Similar Cases
Leicester Square (2015) Limited & Ors v Empire Cinema 2 Limited
[2024] EWHC 2294 (Ch)
SATA Internaçional - Azores Airlines SA v Hi Fly Limited
[2024] EWHC 2762 (Comm)
Harmohinder Singh Gill (as Trustee of the Gilcrest UK Pension Scheme) v Lees News Limited
[2023] EWHC 403 (Ch)
Edouard Cussinel & Anor v Alan Guerin & Ors
[2023] UKUT 235 (LC)