Terminal dilapidations – schedule of condition – diminution in value – damages – construction of the lease

Dem-Master Demolition Ltd v Healthcare Environmental Services Ltd [2017] CSOH 14 (Lady Wolffe) (31 January 2017)

In our March 2016 issue, Commercial Leases Vol 30 Issue 2 at p2265, we highlighted this Scottish case. The hearing was adjourned for the parties to adduce further evidence as to the material circumstance surrounding the execution of the lease because it was not possible to construe the repairing obligation in the lease in a vacuum. The judge held that the physical state of the premises when the lease was granted was a material circumstance. A further hearing took place before Lady Wolffe.