Administrators of insolvent tenants are under a duty to pay rent owed to landlords, says Siobhan Jones
On 24 February 2014, the Court of Appeal delivered their unanimous judgment in the long awaited appeal in Pillar Denton Ltd and Ors v Jervis & Ors [2014] EWCA Civ 180 (Game). The decision has clarified the obligations on the part of administrators of insolvent tenants to pay rent to a landlord where tenant companies go into administration.
Insolvent corporate tenants
These issues have been taxing landlords and administrators alike. The principles as to how rent falls to be treated in these circumstances were considered extensively, and settled, in the cases of Goldacre (Offices) Ltd v Nortel Networks UK Ltd [2010] Ch 455 (Goldacre) and Leisure Norwich (II) and others v Luminar Lava Ignite Ltd (in administration) and others [2012] EWHC 951 (Ch) (Luminar).
In short, an administrator was not liable to pay rent (in advance) which fell due prior to the date of administration, even if the administrator subsequently occupied the premises for the purposes of the administration during
