Overreaching the mortgagor’s rights

Meretz Investments NV and Anor v ACP Ltd and Ors CA TLR 2 January

The second claimant, as the owner of a block of flats, granted the first defendant a long lease of the roof top for the construction of a penthouse. The second defendant took possession of the lease under a mortgage and in the exercise of its power of sale sold it to the fifth defendant, Mr Tamini, thereby preventing the first defendant from performing its leaseback option obligation. The claimants alleged that the defendants and the purchaser of the lease had committed the tort of conspiracy to cause injury by way of economic harm by intending to overreach the mortgagor’s right to grant a sub-lease.