Unlawful subletting and failure to obtain consent lead – a major new case

Crestfort Ltd and others v Tesco Stores Ltd and Magspeed Ltd [2005] EWHC 805 (Ch) (25 May 2005)

Disposal of unwanted premises continues to be difficult for tenants. In a leading judgment Lightman J took a very serious view of an underletting made without consent. He ordered the underlease to be surrendered and that the undertenant should pay damages for wrongful interference with a contract. The case has serious implications for landlords, tenants and undertenants. The case does not create new law but it does highlight a drafting point and illustrates the great care which the tenant and undertenant (and their advisers) must take when managing the disposal of unwanted premises.