PGF II SA v Royal & Sun Alliance Insurance: High Court decision on dilapidations
PGF II SA v Royal & Sun Alliance Insurance: High Court decision on dilapidations
On 13 and 29 July the High Court (Technology and Construction Court, HH Judge Toulmin CMG QC) gave judgment in the case of PGF II SA v Royal & Sun Alliance Insurance [2010] EWHC 1459 (TCC), following a nine day trial. Jonathan Small QC and Edward Peters appeared for the successful claimant, PGF, who obtained judgment for some £860,000. The claim concerned a large office block at the heart of the City, adjacent to Lloyds of London. The decision considered a number of important questions concerning the law of dilapidations, including the appropriate measure of damages and the concept of ‘supercession’, the application of the second limb of s. 18(1) of the Landlord and Tenant Act 1927, and whether the costs of dilapidations schedules can be recovered as damages. PGF were awarded their costs in full.
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