The Weekly Law Reports
[2015] 2 WLR 1593
Supreme Court
Arnold v Britton and others
[2015] UKSC 36
2015 Jan 26;
June 10
Lord Neuberger of Abbotsbury PSC, Lord Sumption, Lord Carnwath, Lord Hughes, Lord Hodge JJSC
Landlord and tenant— Covenant— Service charge— Long leases for holiday chalets— Clause in leases purporting to provide for payment of charge at fixed sum to be increased at compound rate of 10% per year— Clause inserted at time of high inflation— Inflation subsequently at consistently lower annual rates— Landlord levying service charge in accordance with specified sum— Tenants claiming commercial sense requiring clause to be construed as variable service charge based on actual expenditure with fixed sum as cap only— Whether clause providing for fixed sum payment— Whether open to court to depart from natural meaning of clause to prevent commercially absurd result