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Metropolitan Property Realizations Ltd v Atmore Investments Ltd [electronic resource]

Language: English Publication details: 2008Subject(s): Online resources: Summary: [2008] EWCH 2925 (Ch), 28 November 2008. A rent review award may not be final if the arbitrator does not consider a substantial issue when valuing the property. An applicant tenant of shops with residential flats above them applied to the court for an order to set aside an arbitrator's rent review award in proceedings against the respondent landlord. It argued that the valuation method used by the arbitrator, as submitted by the tenant and accepted by the landlord's surveyor, had not taken into account any profit margin on the on the amounts recoverable from subtenants. Held: application granted. The High Court agreed that there had been a serious irregularity had occurred because the arbitrator failed to consider a basic issue. World Trade Corp Ltd v C Czarnikow Sugar Ltd applied. The arbitrator's decision had resulted in a substantial injustice. Accordingly, the Court ordered that the review be resubmitted to the arbitrator who must reduce the rent award to allow for an appropriate profit margin for the tenant.

[2008] EWCH 2925 (Ch), 28 November 2008. A rent review award may not be final if the arbitrator does not consider a substantial issue when valuing the property. An applicant tenant of shops with residential flats above them applied to the court for an order to set aside an arbitrator's rent review award in proceedings against the respondent landlord. It argued that the valuation method used by the arbitrator, as submitted by the tenant and accepted by the landlord's surveyor, had not taken into account any profit margin on the on the amounts recoverable from subtenants. Held: application granted. The High Court agreed that there had been a serious irregularity had occurred because the arbitrator failed to consider a basic issue. World Trade Corp Ltd v C Czarnikow Sugar Ltd applied. The arbitrator's decision had resulted in a substantial injustice. Accordingly, the Court ordered that the review be resubmitted to the arbitrator who must reduce the rent award to allow for an appropriate profit margin for the tenant.