Gallery wins decision over development disturbance 27.05.16

An art gallery has won an important court decision over the disturbance to its business caused by a nearby development project in London’s Mayfair.

The  High Court case related to development of a new block of apartments above the Timothy Taylor Gallery at 15 Carlos Place W1.

Finding in favour of the gallery, the Court ruled that that the way in which the landlord had been carrying out refurbishment works at Carlos Place was in breach of its covenant for quiet enjoyment under the terms of the gallery’s lease.  In particular the design of the scaffolding and the failure to consult and provide sufficient information to enable the gallery to plan around the worst of the noise was found to be unreasonable.

Levy Real Estate’s Head of Professional Services, Paul Krendel, appeared as an Expert Witness in the case. He comments: “I proposed that a 25% reduction in rent during the Building Works was appropriate while the landlord argued for no reduction. In his decision, the Judge decided that the reduction should be 20%.

“The decision highlights the need for developers to take into account the possible disturbance to nearby businesses and particularly in regard to their obligations to any existing tenants they may have who are affected by the works. It is essential that developers work with all parties who may be impacted  to ensure that disruption is kept to a minimum or the consequences, as in this case, can be a loss of rent and damages.”

The Court also awarded the gallery damages to compensate it for the disruption it has experienced since August 2014, until the scaffolding is removed and the noisy works subside.