News | Planning & Environment

Thursday 9th August 2001

SJ Berwin acted successfully for The Walton Group in its dispute with Liverpool City Council (LCC) over the interpretation of an agreement to enter into a lease in relation to the 1 million sq. ft. retail development, Chavasse Park, in the city centre.

LCC entered into an agreement in 1996 with The Walton Group which was subject to the council approving an independent consultants' study as a precondition for the developer's option to purchase the site. However in December 2000 LCC initiated proceedings seeking a court declaration that it was not bound to accept the study and did not have to reject the study on grounds which were "reasonable" and that the lease was void for uncertainty because it did not have a commencement date. The Walton Group succeeded and the Council was prevented from rejecting the scheme on the basis it preferred an alternative scheme. The Court also held that the lease was not void for uncertainty as it could ascertain from the agreement the date the parties must have intended the lease to commence or alternatively if there were two possible dates it could choose the least favourable date to the party seeking to enforce the lease.

SJ Berwin acted on the litigation and planning aspects of the case. Hilton Mervis, litigation partner, commented:

"This case showed the willingness of the Court to protect the commercial interests of parties under an agreement. It would not allow LCC to refuse approval of the scheme without there being reasonable grounds to so do (even though the clause was silent on this point) and nor would it allow the commercial intention of the parties to be thwarted by finding the lease void for uncertainty. Co-operation between our planning, property and litigation departments was an important factor in bringing this case to a successful conclusion".