KEEP OPEN COVENANT HELD TO BE ENFORCEABLE IN SCOTLAND

Highland and Universal Properties Ltd v Safeway Properties Ltd (2000 SLT 414)

The Inner House of the Court of Session in Highland and Universal Properties Ltd v Safeway Properties Ltd, 2000 SLT 414, refused to follow the decision of the House of Lords in Co-operative Insurance Society Ltd v Argyll Stores (Holdings) Ltd [1998] AC 1 (see our July 1997 issue, p1) and held that a covenant to keep retail trading premises open for a significant period of time was specifically enforceable. The case underlines the different approach which is applicable to specific implement in Scotland and demonstrates the need for legal advisers of prospective developers and tenants to take this point into account when drafting a contract or when contemplating a breach of contract.