Burford UK Properties Ltd v Forte Hotels (UK) Ltd (formerly Trust House Forte) and others [2003] EWCA Civ 1800

In December 2003 the Court of Appeal had occasion to consider an appeal concerning a judge’s interpretation of a rent review provision in Burford UK Properties Ltd v Forte Hotels (UK) Ltd (formerly Trust House Forte) and other [2003] EWCA Civ 1800. The Court comprised Auld, Chadwick and Arden LJJ.

The case

The landlord (B) appealed the decision of the first instance judge who dealt with a preliminary issue on the construction of the rent review provisions in a lease. The property was a hotel in York. The rent review provisions were set out in Sched 3 to the lease and provided for a review every 14 years. The reviewed rent was to be fixed by reference to net bedroom revenue (NBR). Paragraph 1(e) of Sched 3 set out the accounting mechanism to be employed in order to calculate NBR. This was subject to a proviso that: