Development lease – mortgagee exercising power of sale – leaseback option extinguished – whether economic tort

Meretz Investments NV and Britel Corporation NV v ACP Ltd, First Penthouse Ltd and Fahad Al Tamimi [2007] EWCA Civ 1303; The Times, 2 January 2008 (11 December 2007)

This case concerns an agreement for the development of premises, the grant of a development lease to enable the development to take place and the option of a leaseback to the freeholder in the event that the development was not completed. In the event circumstances came about which prevented the freeholder from exercising the leaseback option and the freeholder sought to recover damages for economic torts.