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Rent arrears Equitable set-off
Court of Appeal
Pill, Scott Baker and Neuberger LJJ
22 March 2006
Landlord and tenant - Covenant - Assignment - Assignee of reversion claiming rent arrears - Tenant bringing claim against previous landlord for defective construction - Whether tenant entitled to claim set-off in respect of rent arrears accruing after assignment - Appeal dismissed
The appellant was the lessee of a site. The reversion of its lease was assigned to the respondent. The original lessor had granted the lease pursuant to an agreement under which, as the then owner of the land, it had agreed to construct a factory on the site, which was to be leased to the appellant.
The respondent brought an action against the appellant for, inter alia, arrears of rent. The appellant admitted the arrears but sought to set off a claim for damages against the original...