Scrutinising landlord commissions in placing insurance (London Trocadero v Picturehouse Cinemas)

Tiffany Scott KC has written a case analysis for LexisNexis, examining the important implications of the judgment in London Trocadero v Picturehouse Cinemas.

The High Court has held that a landlord of commercial premises had been significantly overcharging its tenant insurance rent by taking a commission as part of the insurance premium. The landlord (part of the Criterion Group which holds a portfolio of property worth over £4bn) was ordered to repay over £700,000 to its tenant. This is a significant judgment for practitioners with landlord and/or tenant clients and group litigation seems likely to follow if an appeal is not mounted by the landlord or is unsuccessful.

The consequentials hearing is pending, and the time for appealing has been extended (The Times reported that Criterion intends to appeal).

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