Lease – rent reduction – option to surrender – notice of termination – right to a new lease

Stapleyside Company v Carraig Donn Retail Ltd [Appeal No: 61/2011] (The Supreme Court of Ireland) (9 July 2015)

We mention this Irish case because it raises an interesting point on construction. The case highlighted the difficulty facing many tenants, at the height of the financial crisis, in paying rent due under leases that had been fixed at the height of the boom. To help alleviate the tenant’s position terms were re-negotiated. An issue arose on that as to whether the original tenancy was terminated, so that the tenant was entitled to a new lease at a (lower) market rent or whether the original lease continued in full force and effect. The outcome turned on the precise legal status of a document.