“5. THE LANDLORD COVENANTS with the Tenant as follows: 5.1 The Tenant paying the rents reserved and performing the Tenant’s covenants in this Lease may lawfully and peaceably enjoy the Premises throughout the Term without interruption by the Landlord or by any person lawfully claiming through under or in trust for the Landlord or by title paramount”
“Both sides proceeded on the basis that there was no difference in the principles to be applied whether the case was framed in nuisance, breach of covenant for quiet enjoyment, or derogation from grant.”
“I should spell out, before moving on, that in relation to my findings on noise, in referring to the carrying out of noisy works I am not to be taken as suggesting there was otherwise silence. Most construction work will involve some noise. Rather, I am referring to the heavier work which would be impossible for those in the Premises to ignore. The video recordings I viewed show examples of noisy works.”
“Dr Jafari therefore received back, by way of concession, the full value of these premises for a period equivalent to that for which the scaffolding was up and very much longer than that for which he experienced noise from the development works, those works being on hold from April 2012 until January 2013.” (see [44]) He then gave his conclusions on reasonableness which I should read in full: “45. What then is the answer to the question of reasonableness given all those factors? Subject to one point, it my judgment that having regard to all the circumstances, including the financial compensation offered, Tareem did take all reasonable steps to minimise the disturbance to Dr Jafari. Overall, while it is true that there could have been some improvements to the way the works were done from Dr Jafari’s standpoint, principally the design of the scaffolding and avoiding altogether noisy works outside of what I have referred to as restricted hours, this is not a case where no consideration was given to the tenant. For much of the period of the works a scheme was put in place for the noisy works to be carried out during very restricted hours and was largely adhered to. Further, generous financial compensation was given, being the annual value of the premises for a period of around 21 months, from the March 2012 quarter day to the December 2013 quarter day. 46. I have said my conclusion on this question of reasonableness is subject to one point. That point is that whereas I have had regard to the fact that the redevelopment works had some benefit for Dr Jafari in that his old windows were to be replaced with new, that part of the works was in fact never carried out. To that limited extent, Tareem has not taken all reasonable steps and so the failure to replace the windows should be reflected in damages if that failure does not otherwise sound in damages.”
“Using a necessarily broad brush and such damages not, in any event, being a matter of precise mathematical calculation, I award a total of£10,875 . That is a sum equivalent to the rate of 15% of the annual rent for a period of five years, being from the conclusion of the redevelopment works contract to date.”
“Having listened carefully to both the factual witnesses and the accounting experts, I have come to the clear conclusion that the works did not cause Dr Jafari a loss of profit. The way Dr Jafari described the effect of the works was that a good practice went downhill when the scaffolding went up. That is not, in my judgment, what the evidence shows.”
“A number of suggestions were explored in cross-examination as to why turnover of the business subsequently reduced and that there is now, for the first time, a reduction in NHS fee income. One example was a lack of leadership. But I do not need to reach a conclusion about that. What is clear to me, for the reasons I have given, is that Tareem’s works are not the cause.”
“So, on a challenge to an evaluative decision of a first instance judge, the appeal court does not carry out a balancing task afresh but must ask whether the decision of the judge was wrong by reason of some identifiable flaw in the Judge’s treatment of the question to be decided, ‘such as a gap in logic, a lack of consistency, or a failure to take account of some material factor, which undermines the cogency of the conclusion’.” that being taken from a Supreme Court decision in R (on the application of AR) v Chief Constable of Greater Manchester Police & anor.[2018] UKSC 47 . Mr Blaker, for his part, referred me to a number of further authorities, namely the decision of the Supreme Court in McGraddie v McGraddie & Anor[2013] UKSC 58 and those of the Court of Appeal in Fage UK Ltd & Anor v Chobani UK Ltd & Anor[2014] EWCA Civ 5 , and Staechelin & Ors v ACLBDD Holdings Ltd & Ors[2019] EWCA Civ 817 . In the latter case, Lewison LJ, at [29], cited from what he had said in Fage at [114] as follows: “Appellate courts have been repeatedly warned, by recent cases at the highest level, not to interfere with findings of fact by trial judges, unless compelled to do so. This applies not only to findings of primary fact, but also to the evaluation of those facts and to inferences to be drawn from them. ...The reasons for this approach are many. They include i. The expertise of a trial judge is in determining what facts are relevant to the legal issues to be decided, and what those facts are if they are disputed. ii. The trial is not a dress rehearsal. It is the first and last night of the show. iii. Duplication of the trial judge’s role on appeal is a disproportionate use of the limited resources of an appellate court, and will seldom lead to a different outcome in an individual case. iv. In making his decisions the trial judge will have regard to the whole of the sea of evidence presented to him, whereas an appellate court will only be island hopping. v. The atmosphere of the courtroom cannot, in any event, be recreated by reference to documents (including transcripts of evidence). vi. Thus even if it were possible to duplicate the role of the trial judge, it cannot in practice be done.”
“What matters is whether the decision under appeal is one that no reasonable judge could have reached.” [and] “An appellate court is bound, unless there is compelling reason to the contrary, to assume that the trial judge has taken the whole of the evidence into his consideration.” [and] “An appellate court could therefore set aside a judgment on the basis that the judge failed to give the evidence a balanced consideration only if the judge’s conclusion was rationally insupportable.” and at [33], from yet another Supreme Court Case, Perry v Raleys Solicitors[2019] UKSC 5 at [52] as follows: “They may be summarised [that is the constraints on interfering with findings of fact] as requiring a conclusion either that there was no evidence to support a challenged finding of fact, or that the trial judge’s finding was one that no reasonable judge could have reached.”
“There was no decline in income from private work in the year ended April 2013.”
“Clearly, Dr Jafari found these works difficult to live with. In my judgment, the disturbance from them has become exaggerated in his mind and in the minds of those around him, and there has been attributed to the works an impact on his business which does not match the reality.”
“I do not ignore that income did drop in the year to April 2014 but that is explained, at least in large part, by Dr Jafari then practising from Bexhill as well as from the premises; he having acquired a dental business in Bexhill in 2012. From the financial evidence I have referred to, I am satisfied that that different pattern of work was not caused by a drop in business at Brighton resulting from the works.”
“In the absence of any positive evidence of breach of duty, merely to show that a claimant's loss was consistent with breach of duty by the defendant would not prove breach of duty if it would also be consistent with a credible non-negligent explanation. But where a claimant proves both that a defendant was negligent and that loss ensued which was of a kind likely to have resulted from such negligence, this will ordinarily be enough to enable a court to infer that it was probably so caused, even if the claimant is unable to prove positively the precise mechanism. That is not a principle of law nor does it involve an alteration in the burden of proof; rather, it is a matter of applying common sense.”
“An early example of exaggeration is to be found in the first letter from Dr Jafari’s solicitors being dated28 March 2013 . It complained of incessant noise since October 2012 when, of course, works did not resume until January 2013.”
“However, since October 2012 until now and ongoing, our client’s business has practically been brought to its knees due to the incessant noise and general disruption caused by your contractors.”
“...principally, the design of the scaffolding and avoiding altogether noisy works outside of what I have referred to as restricted hours.”
“No, but given it is a factor ... it must be capable of changing the conclusion, must it not, so that it may make reasonable that which without the financial offer would have been unreasonable?”
“18. We have deliberately made no reference so far to an aspect of the case to which the district judge paid express attention in the passage of his judgment cited above. He found that the work had been arranged to meet the claimant’s requirements as far as possible, and that the lessor had been helpful with regard to the reduction and payment of the service charge. It is worth explaining what he was referring to, because it illustrates what may make the difference between the reasonable and unreasonable execution of repairs which are going to disturb a tenant’s quiet enjoyment. In brief, before embarking on the works the lessors had sent the lessee a copy of the full estimate which they proposed to accept, prices included. The lessee wrote back, strongly querying the price but also pointing out that the proposed start date would interfere with the restaurant’s busiest period over Christmas. The lessors, having considered these representations, postponed the start of the works until March 1997 and agreed to spread the first instalment of the consequent service charge over a year. It can readily be seen why the district judge’s view that the lessor had taken all reasonable steps to respect the lessee’s contractual interests was not contested on appeal. It will always be necessary for reasonableness to be looked at on the facts and in the light of the legal considerations which we have set out above. 19. This lease, like many leases, makes limited provision to compensate the tenant for interruption of the enjoyment of the demise. It is perfectly possible, at least in principle, to make provision in a lease to cover the kind of disruption which has occurred here. In its absence, while there is no obligation or necessity to reflect the disturbance of quiet enjoyment by remitting rental service charges, an offer to do so may well help in establishing the overall reasonableness of the lessor’s intervention.”
“I deduce from these authorities [one of which was Goldmile] the following propositions, most of which were common ground between the parties:- (a) In a case like the present, the landlord’s reservation of a right to build in a way which, but for that reservation, would constitute either a breach of the covenant for quiet enjoyment or a breach of the implied covenant not to derogate from the grant should be construed as entitling the landlord to do the work contemplated by the reservation provided that in doing that work the landlord has taken all reasonable steps to minimise the disturbance to the tenant caused thereby; (b) In considering what can reasonably be carried out, it is relevant what knowledge or notice the tenant had of the works intended to be carried out by the landlord at the commencement of the lease; (c) An offer by the landlord of financial compensation to the tenant to compensate the tenant for disturbance caused by the works is a factor which the Court is entitled to take into account in considering the overall reasonableness of the steps which the landlord has taken.”
“Even without authority, therefore, I would have no difficulty in accepting that where a landlord has let premises for a particular purpose and the lease contains both a covenant for quiet enjoyment and an obligation or right on the landlord to do repairs, neither provision trumps the other. On the contrary, they have to be made to fit together. The landlord cannot say that as the tenant took the demise subject to his repairing obligation, the tenant has to put up with the landlord’s works, however unreasonably they are carried out. But, equally, the tenant cannot say that having given the covenant for quiet enjoyment, the landlord cannot carry out any work unless it is shown to cause the least possible interference with the tenant’s business. Both positions are too extreme. The way the two provisions fit together is that the landlord can carry out work provided he acts reasonably in the exercise of his right.”
“This is not a case where there is a right to build that expressly qualifies the covenant for quiet enjoyment and, therefore, the court is required to strike a balance between those competing rights (see Timothy Taylor).”